Justin Trudeau to announce temporary GST relief

Prime Minister Justin Trudeau will announce a two-month GST relief on select items heading into the holidays to address affordability issues, sources have confirmed to CTV News.

Trudeau is expected to unveil the tax break on Thursday, along with Deputy Prime Minister and Finance Minister Chrystia Freeland. The policy announcement was first reported by The Globe and Mail.

The temporary GST relief will apply to children’s items such as clothing and diapers, as well as pre-prepared hot meals. It will not apply to monthly bills.

Last week, NDP Leader Jagmeet Singh pledged his party would eliminate the GST on daily essentials and monthly bills, if elected.

Late Wednesday, after being briefed on the upcoming announcement, the NDP issued a statement, taking credit for the policy.

“The NDP is delivering a winter tax holiday to Canadians. The prime minister’s office just informed us that he’s caving to our Tax-Free-Essentials campaign — partly,” Singh said.

The statement also signalled the NDP “will vote for this measure because working people are desperate for relief, and we’re proud we delivered for them again.”

The Liberals’ proposed GST cut would require legislation, which means they need support from another party to break the current two-month standstill in the House of Commons. The impasse is over the government’s refusal to hand over documents related to a now-defunct green tech fund. No legislation can pass until debate on that issue ends.

An NDP source tells CTV News that the party is still weighing its options over whether to support the Liberals and break the stalemate in the House of Commons.

This is a developing story. More details to come.

With files from CTV News Chief Political Correspondent Vassy Kapelos