The GST Christmas 'holiday'

Being in opposition comes with the crucial responsibility of holding government accountable—a duty I take very seriously. The role demands thorough due diligence and scrutiny of government policies and actions.

Over time, opposition parties typically recognize patterns in how the government they scrutinize operates, making few government policies truly surprising. However, in the past week, all of that changed when the Liberal government announced two measures that took many who follow Canadian politics by surprise.

The first measure was a GST Christmas “holiday"—a temporary expansion of GST-exempt items from Dec. 14 to Feb. 15.

Many of the items that will soon be temporarily GST-exempt are likely to appeal to Canadian families. They include children's clothing and shoes, car seats, diapers and toys. The list extends further to include books, print newspapers, puzzles and Christmas trees—both real and artificial. Moreover, all restaurant dining will be GST-exempt during this period, whether dining in, taking out or ordering for delivery.

The list of temporary GST exemptions also includes several controversial items such as beer, cider, pre-mixed alcoholic drinks, “junk” foods and expensive video gaming terminals, which will all become cheaper during this GST-free period.

The (government’s) gift-giving does not end there. It has also announced the "Working Canadians Rebate," which will send a $250 cheque in early spring 2025 to 18.7 million Canadians who worked in 2023 and earned up to $150,000 in individual net income. Those who are disabled or unemployed will not qualify for the $250 rebate.

To be clear,while those earning up to $150,000 will receive this rebate, those most in need, people with disabilities and the unemployed, will not qualify for this government program.

The Liberals' GST Christmas holiday is estimated to cost $1.6 billion, while the $250 Working Canadians Rebate will cost approximately $4.7 billion—bringing the combined cost to over $6 billion. In provinces with harmonized sales taxes (HST), this unilateral action will have an even greater impact, as their HST rates range from 13% to 15% and not just the 5% GST we have in British Columbia.

If you're wondering why the government believes these programs are necessary, the finance minister recently stated, "People have been talking about a “vibecession”… and the fact that Canadians just aren't feeling that good."

That begs the important question, what is a vibecession? According to various urban dictionary definitions, a vibecession is a neologism that refers to a disconnect between the economy of a country and the general public's negative perception of it.

In other words, the government believes the economy is performing better than many Canadians perceive it to be. These programs are designed to help Canadians "get past that 'vibecession' because how [they] feel really does have an economic impact"—again, to quote the finance minister directly.

My questions to you this week:

Do you agree with the finance minister that Canada is experiencing a "vibecession"—that is, is the economy actually performing better than many Canadians believe it is? Why or why not?

I can be reached at Dan.Albas@parl.gc.ca or call toll free 1-800-665-8711.

Dan Albas is the Conservative MP for Central Okanagan-Similkameen-Nicola.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.