Finance Minister Chrystia Freeland says the federal government is hoping a temporary break on GST will address a ‘vibecession’ that has gripped Canadians.
Prime Minister Justin Trudeau announced on Thursday that starting Dec. 14 the goods and services tax will be taken off a slew of items for two months to help with the affordability crunch.
Freeland says there’s a disconnect between recent good news on inflation and interest rates and how Canadians are feeling about the economy, something she said is being referred to as a “vibecession.”
She says the tax cut is meant to help bridge that gap and stimulate consumer spending.
The federal government also plans to send $250 cheques in the spring to Canadians who were working in 2023 and earned up to $150,000.
The two measures are estimated to cost the federal government $6.3 billion.
This report by The Canadian Press was first published Nov. 25, 2024.
