The winners and losers of the Liberals' holiday tax break and cash giveaway
CTV
The Liberal government is pulling out the federal wallet to put more money into people's pockets over the holidays, but its recently announced affordability measures create winners and losers.
The Liberal government is pulling out the federal wallet to put more money into people's pockets over the holidays, but its recently announced affordability measures create winners and losers.
Prime Minister Justin Trudeau announced on Thursday that the federal government will remove the goods and services tax on a slew of items for two months, starting Dec. 14.
But in Ontario and Atlantic provinces, the provincial and federal sales taxes are blended together into a harmonized sales tax, which means Canadians in those jurisdictions will get a larger break.
In Atlantic Canada, for example, Canadians will not have to pay the 15 per cent HST on on the items affected by the federal tax break. But in in Manitoba, Saskatchewan and British Columbia if the provinces don't waive their sales taxes, Canadians will only be relieved from paying the five per cent GST.
Agreements between the federal government and those provincial governments stipulate that Ottawa has to compensate provinces for changes to the harmonized sales tax that reduce their revenues by more than one per cent.
A spokeswoman for Finance Minister Chrystia Freeland wouldn't say whether the federal government will be compensating those provinces and instead encouraged them to pitch in.
"We hope all provinces will join us and provide their share of tax relief for their residents over the holidays, as Newfoundland and Labrador has done," Katherine Cuplinskas said in a statement.
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