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An Act respecting temporary cost of living relief (affordability)

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Tax Break for All Canadians Act
Parliament of Canada
  • An Act respecting temporary cost of living relief (affordability)
Passed byHouse of Commons of Canada
PassedNovember 28, 2024.[1]
Passed bySenate of Canada
PassedDecember 12, 2024[2]
Royal assentDecember 12, 2024[3]
CommencedDecember 14, 2024[4]
Date of expiryFebruary 15, 2025[4]
Legislative history
First chamber: House of Commons of Canada
Bill titleBill C-78
Introduced byFormer Deputy Prime Minister and Minister of Finance Chrystia Freeland
Committee responsibleFinance
First readingNovember 27, 2024[5]
Second readingNovember 28, 2024[6]
Voting summary
  • 176[8] voted for
  • 151[8] voted against
Considered by the Finance CommitteeNovember 28, 2024[7]
Third readingNovember 28, 2024[1]
Second chamber: Senate of Canada
Bill titleBill C-78
Member(s) in chargeRepresentative of the Government in the Senate Marc Gold
Committee responsibleNational Finance
First readingDecember 3, 2024[9]: 7742 
Second readingDecember 3, 2024[9]: 7749–7756 
Considered by the National Finance CommitteeDecember 3, 2024 - December 5, 2024[10][11][12]
Third readingDecember 10, 2024 - December 12, 2024[13][14][2]
Voting summary
Committee reporthttps://sencanada.ca/en/committees/NFFN/Report/140065/44-1
Status: In force

An Act respecting temporary cost of living relief (affordability) (French: Loi concernant l'allègement temporaire du coût de la vie (abordabilité)), informally referred to as Bill C-78, is a bill introduced on November 27, 2024, during the first session of the 44th Canadian Parliament[16]. It was passed in the House of Commons on November 28, 2024 [1], passed in the Senate on December 12, 2024[2], and received royal assent on the same day[3].

Effective December 14, 2024, the bill waives the Goods and services tax and the Harmonized sales tax (for provinces that adopted HST) on certain qualifying items in the following categories until February 15, 2025[17]:

  • Food and beverages
  • Children's clothing and footwear
  • Diapers
  • Child booster seats
  • Christmas trees
  • Print books and Newspapers
  • Toys
  • Games

History

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Main article: Economic history of Canada § Recent years

Bill C-78 was introduced to alleviate the cost of living crisis in Canada[18]. In Q2 2022, inflation rates in Canada reached a maximum of 8.1%, the highest rate in over 30 years[19]. The Consumer Price Index of Canada increased 4.4% from the end of 2019 to the end of 2023[20]. Nearly half of Canadians in a Statistics Canada survey reported that their ability to cover daily expenses was greatly impaired by the rise in prices of everyday goods[21].

Reception

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The bill has received mixed reactions from the general public. While most shoppers welcomed the tax break[22], others noted that it wouldn't truly create that much of an overall impact[23]. Some businesses reported increased logistical burdens over determining the eligibility of and adjusting the tax rate for throusands of items on short notice[24]. As the tax holiday is implemented on a voluntary basis, consumer confusion may arise, with some retailers participating in the program and others not[25]. The tax relief may also temporarily increase inflation, disporportionately benefit wealthier individuals with more disposable income, and ultimately increase economic inequality[26]

See also

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References

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  1. ^ a b c "Government Bill (House of Commons) C-78 (44-1) - Third Reading - Tax Break for All Canadians Act - Parliament of Canada". www.parl.ca. Retrieved 2024-12-15.
  2. ^ a b c Canada, Senate of. "Debates, Issue 249 (December 12, 2024)". SenCanada. Retrieved 2024-12-15.
  3. ^ a b "Government Bill (House of Commons) C-78 (44-1) - Royal Assent - Tax Break for All Canadians Act - Parliament of Canada". www.parl.ca. Retrieved 2024-12-15.
  4. ^ a b Canada, Department of Finance (2024-12-12). "Legislation to put more money in your pocket receives Royal Assent". www.canada.ca. Retrieved 2024-12-15.
  5. ^ "Government Bill (House of Commons) C-78 (44-1) - First Reading - Tax Break for All Canadians Act - Parliament of Canada". www.parl.ca. Retrieved 2024-12-15.
  6. ^ "C-78 (44-1) - LEGISinfo - Parliament of Canada". www.parl.ca. Archived from the original on 2024-12-12. Retrieved 2024-12-15.
  7. ^ "Debates (Hansard) No. 378 (44-1)" (PDF). Parliamentary Debates (Hansard). Canada: House of Commons of Canada. November 27, 2024. p. 28304.
  8. ^ a b "Vote Detail - 904 - Members of Parliament - House of Commons of Canada". www.ourcommons.ca. Archived from the original on 2024-12-12. Retrieved 2024-12-15.
  9. ^ a b "Debates of the Senate" (PDF). Parliamentary Debates (Hansard). Vol. 153. Canada: Senate of Canada. December 3, 2024. p. 7742.
  10. ^ Canada, Senate of. "Meetings #134 - Standing Senate Committee on National Finance (44th Parliament, 1st Session)". SenCanada. Retrieved 2024-12-15.
  11. ^ Canada, Senate of. "Meetings #135 - Standing Senate Committee on National Finance (44th Parliament, 1st Session)". SenCanada. Retrieved 2024-12-15.
  12. ^ Canada, Senate of. "Meetings #136 - Standing Senate Committee on National Finance (44th Parliament, 1st Session)". SenCanada. Retrieved 2024-12-15.
  13. ^ Canada, Senate of. "Debates, Issue 246 (December 5, 2024)". SenCanada. Retrieved 2024-12-15.
  14. ^ Canada, Senate of. "Debates, Issue 247 (December 10, 2024)". SenCanada. Retrieved 2024-12-15.
  15. ^ a b c Canada, Senate of. "Vote Details: Tax Break for All Canadians Act – C-78 – Third Reading". SenCanada. Retrieved 2024-12-15.
  16. ^ "Debates (Hansard) No. 377 (44-1)" (PDF). Parliamentary Debates (Hansard). Canada: House of Commons of Canada. November 27, 2024. pp. 4775–4778.
  17. ^ Agency, Canada Revenue (2024-11-28). "GST/HST break". www.canada.ca. Retrieved 2024-12-15.
  18. ^ Canada, Department of Finance (2024-12-09). "Remarks by the Deputy Prime Minister regarding Bill C-78, the Tax Break for All Canadians Act". www.canada.ca. Retrieved 2024-12-19.
  19. ^ Kostyshyna, Olena; Ouellet, Maude (2024-09-05). "Household Food Inflation in Canada". www.bankofcanada.ca. doi:10.34989/swp-2024-33. Retrieved 2024-12-19.
  20. ^ "Canada CPI: 12-month percent change 2023". Statista. Retrieved 2024-12-20.
  21. ^ Government of Canada, Statistics Canada (2024-08-15). "The Daily — Nearly half of Canadians report that rising prices are greatly impacting their ability to meet day-to-day expenses". www150.statcan.gc.ca. Retrieved 2024-12-19.
  22. ^ Ramsay, Janis (2024-11-25). "'Keep shopping': Ontario retailers react to GST/HST tax rebate relief coming Dec. 14 in Canada". InsideHalton.com. Retrieved 2024-12-19.
  23. ^ "'Not that much of a deal': Shoppers, businesses lukewarm on GST holiday". Canadian Broadcasting Corporation. 2024-12-14. Retrieved 2024-12-19.
  24. ^ "GST break begins with business owners frustrated at the last-minute measure". The Globe and Mail. 2024-12-14. Retrieved 2024-12-19.
  25. ^ Arsenych, Alex (2024-12-14). "Holiday tax break is a 'pain in the butt' for some Ontario retailers". CP24. Retrieved 2024-12-19.
  26. ^ Islam, Shahidul; Ghosh, Subhadip (2024-12-10). "Canada's holiday tax break will have winners and losers — here's what you need to know". The Conversation. Retrieved 2024-12-19.
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