Survey Shows Most Canadians Believe GST Holiday Will Have Minimal Impact

December 4, 2024 TruthUSA

The promise of a GST holiday and a $250 cheque for working Canadians in the spring has done little to instil extra holiday cheer among the populace, a new poll has found.

The Leger survey released Dec. 3 asked Canadians how financially helpful the tax break and spring rebate will be to them.

The results indicated a limited level of enthusiasm for the measures, with fewer than one-third of those surveyed saying they would be particularly helpful.

The tax break between Dec. 14, and Feb. 15 will see “holiday essentials” such as snacks and prepared foods exempt from GST and HST at the grocery store.

Restaurant meals, beer, wine, toys, Christmas trees and certain items for children such as clothing, footwear, and diapers will also be tax-free during the two-month period.

Only 12 percent of those polled said the measure will “help a lot” while 21 percent said it would “help somewhat.” Thirty percent said it would only help a little and 35 percent said it wouldn’t help at all.

Fifty percent of those surveyed said the GST holiday would not change their holiday shopping plans, while 16 percent said they would “maybe” have some shopping left to do that would coincide with the tax break.

Fourteen percent said they would leave some of their Christmas shopping until after the 14th to take advantage of the tax holiday, and 15 percent said they planned to do most of their shopping after the tax break begins.

The “Working Canadians Rebate,” a $250 payment designated for the 18.7 million Canadians who were employed in 2023 and earned $150,000 or less, garnered even less enthusiasm than the GST holiday.

Only 12 percent said the measure would “help a lot” and 18 percent said it would “help somewhat.” Twenty-five percent said it would only help a little and 42 percent said it wouldn’t help at all.

The GST holiday legislation, known as the “Tax Break for all Canadians Act,” was passed in the House of Commons last week. The bill had received its second reading in the Senate as of Dec. 3.

The bill was supported by the Liberals and the NDP and was opposed by the Conservatives, who say it’s inflationary, and the Bloc Québécois, who describe it as a vote-buying measure.

Seventy percent of those polled by Leger agreed with the Bloc’s sentiment, saying that the GST holiday and the $250 cheque are “electoral measures to get people’s vote.”

Twenty-one percent said the tax break and rebate would help people cope with inflation and 9 percent were undecided or didn’t answer.

Survey respondents were also asked what they would value more: the GST holiday or a two-month suspension of the carbon tax on gasoline, natural gas, and other fuels. Half of those polled said they’d rather the government temporarily drop the carbon tax on fuel than implement a GST break on select items. Twenty-eight percent said they preferred the tax holiday and 21 percent were undecided.

Canada’s carbon tax is the price placed on the carbon content of fuels to reduce CO2 emissions. It is currently priced at $80 per tonne but is set to increase to $95 in April 2025 and will increase by $15 each year until the tax eventually reaches $170 per tonne in 2030.

The government has said the federal sales tax holiday will enable a family that spends $2,000 on the goods covered during the two-month break to save $100.

Families living in provinces like Ontario where GST and provincial sales tax are blended would save $260 in HST on the same $2,000 basket of qualifying purchases, Ottawa said in a press release.

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