Remarks by the Deputy Prime Minister announcing a tax break for all Canadians and the Working Canadians Rebate

Sharon, Ontario - November 21, 2024

Check against delivery

It is really wonderful to be here at Vince’s, which is a local institution—a place that is trusted, and I’m going to say beloved, by families in this community.

It’s great to be here in the heart of such an important community, so close, to make some announcements that will really help middle class Canadians with the issue they are most worried about, and that is affordability.

Before coming out to make our announcement, the Prime Minister, Tony [Van Bynen, MP], Francesco [Sorbara, MP] and I had a chance to talk to Giancarlo [Trimarchi, Partner at Vince’s Market]. Tony and Francesco know him well and know Vince’s very well, and it was such a valuable window into the life of this community, and also into the lives of Canadians. And what Giancarlo told us, you can see what has been happening in the Canadian economy at the checkout counter here at Vince’s. He talked about how things were really hard for Canadians at the beginning of this year. That inflation was coming down, but interest rates were still high, and that was really biting in the pocketbook.

One thing that Giancarlo told us that I really loved is he said he could almost measure the trajectory of interest rates by what people were doing at the cash register here. And as rates have come down, people have been coming back into Vince’s and have been able to spend a little bit more. That's exactly what we know Canadians need—Canadians needed that relief.

And the good news is now that inflation is under control—it has been within the Bank of Canada’s target range for ten months in a row—that has allowed the Bank to bring down rates and that has created the space for us to provide a little more relief for hard-working Canadians.

And so today we’re announcing two really important forms of support. The first you’re going to see at the cash register here at Vince’s and at grocery stores, at restaurants, at toy stores across the country. This is going to be about giving just a little bit of extra help to families over the holidays, from the middle of December to the middle of February.

We are going to have a GST holiday on all prepared foods. So right now, some foods are not subject to GST, but prepared foods are. Things like a rotisserie chicken, things like if you have had a really busy day and you have to feed your kids at the end of the day, maybe you’re tempted to go to the grocery store and pick up a prepared meal, but it’s expensive, and on top of the extra cost of a prepared meal, you have to pay the GST. And Giancarlo has been telling us he sees young working families wanting to buy those prepared meals, but sometimes they can’t quite afford it.

Lifting the GST is going to make it that little bit easier, and it comes just in time for the holidays when people are going to want to be entertaining, are going to want to have people over. So on prepared foods—we’re lifting the GST. On restaurant meals—we’re lifting the GST. That’s going to include beer and wine—no GST. And Giancarlo does sell beer and wine here, so you’re going to be able to do that at your grocery stores or gas stations where beer and wine are available.

And it’s the holidays, so we’re also lifting the GST on a carefully chosen basket of holiday gifts: kid’s clothes, diapers, car seats, kid’s shoes. It includes things like hats, like tuques, like knits for your kids, scarves; also on toys for your kids; also on books and periodicals.

So, this is really about saying to Canadians, things have been hard—they are getting better. Our economy really looks like it is having a soft landing from the COVID recession, and this is about making life a little bit easier, because we have the space now to do it.

The second announcement is about directly helping Canadians, workers across the country, and they will receive that support in April. As the Prime Minister said, we will be sending $250 cheques to every Canadian who worked in 2023 and earned $150,000 or less.

These cheques for $250 are about recognizing that working Canadians have been through some tough times, and this is about providing direct support to people; the people who have been working hard to get us through some tough times, and the people who we are counting on to power Canada’s economic recovery.

I do want to offer one piece of practical advice. We want to know if you were working in 2023, so please, if you haven’t filed a tax return, file your tax return by December 31st. That will make it possible for us to send you that cheque for $250. It’s going to be paid on an individual basis to everyone who worked in 2023 and made $150,000 or less; so, support for working people, the people who have really gotten our country through a tough time, and who we’re counting on to really power a very strong recovery at the end of this year and next year.

Thank you very much.