NDP Announces Campaign Promise to Eliminate GST on Internet, Heating, Diapers, and More

OTTAWA—The NDP would eliminate the GST on all “essentials” if it assumes power after the upcoming election, NDP Leader Jagmeet Singh stated on Thursday.

This declaration comes amidst the prominence of the cost of living in several provincial elections this fall, and was a significant factor in the recently concluded U.S. presidential race with Donald Trump emerging victorious.

“When you purchase groceries, there’s no GST applied to them, so that happens directly at the register. We aim to expand this to recognize that Canadians are facing challenges, and our daily essentials should not be subject to government taxation,” Singh explained during a presentation at the Canadian Club in Toronto.

For the NDP, essential items include pre-made meals and grocery store food, clothing for children under 15, diapers, home heating, as well as cell phone and internet bills.

An unnamed senior NDP official revealed that the party estimates this move would save the average household about $500 annually.

The implementation of this policy would result in approximately $5 billion in lost tax revenue for the federal government, according to the official. The party plans to recoup this through a proposed “excess profit tax.”

Previously, the NDP attempted to permanently remove the GST from home heating with a motion in the House of Commons last November. The motion was defeated with only the NDP and Green Party in favor.

Some provinces like Ontario already exempt certain items such as children’s clothing and certain prepared grocery items from the provincial portion of the HST or provincial sales tax.

However, these exemptions are not consistent. Saskatchewan, for example, included sales tax on prepared grocery meals and children’s clothing as part of its 2017 budget.

During the 2021 election, the NDP pledged to raise the corporate tax rate back to the 2010 level of 18 percent, up from the current 15 percent. Singh did not specify if this remains his stance, but during a discussion with a Canadian Club representative following his speech, he expressed the desire to reduce taxes for small and medium-sized businesses to support their growth.

For most of the current minority government, the NDP has backed the Liberals through a supply-and-confidence agreement. Under this agreement, the Liberals committed to addressing NDP priorities like dental care and pharmacare programs in return for support on confidence votes.

Singh terminated the agreement at the beginning of September, placing the timing of the next election largely in the hands of the NDP.

The Conservatives have attempted to bring down the minority government twice since the dissolution of this partnership, with unsuccessful non-confidence motions that both the NDP and the Bloc Québécois opposed.

However, the Bloc now aims to oust the government after the Liberals failed to meet a deadline set by the Bloc to implement policies to raise old age security payments for certain seniors and protect supply management in future trade negotiations.

It would likely require the support of the Conservatives, Bloc, and NDP to pass a non-confidence motion and topple the government.

The next election must take place by Oct. 20, 2025, but it could occur earlier if the Liberals lose the backing of the House of Commons.