Trudeau to cut sales tax and send cheques to millions of Canadians as election looms

Canadian Prime Minister Justin Trudeau’s government announced plans on Thursday to temporarily lift the federal sales tax from a number of items and send cheques to millions of Canadians who are dealing with rising costs and as a federal election looms.

The measures come as a cost of living crisis has left voters unhappy with Trudeau and ahead of an election that could come any time between this winter and next October.

“Our government can’t set prices at the checkout, but we can put more money in people’s pockets,” Trudeau said at a press conference in Toronto.

Under the plan, Canadians who worked in 2023 and earned up to C$150,000 (US$107,440) will receive a cheque for C$250. Trudeau noted that even those earning at the high end of that amount have been struggling to get by.

An estimated 18.7 million Canadians will receive the one-time cheque.

The federal goods and services tax break would begin on December 14 and end on February 15.

The government said the tax break will apply to a number of items including children’s clothing and shoes, toys, nappies, restaurant meals, beer and wine. It also applies to Christmas trees, a variety of snack foods and drinks and video game consoles.