Remarks by the Deputy Prime Minister regarding Bill C-78, the Tax Break for All Canadians Act

December 4, 2024 - Ottawa, ON

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I’m glad to be here to discuss Bill C-78, the Tax Break for All Canadians Act, which is an important part of our government’s plan to make life more affordable.

I would like to outline why it is so important that the Senate support this legislation.

Inflation has cooled and interest rates are dropping, but we know that life is still hard for Canadians. That is why now is the time to give them a bit of help.

Our government cannot set prices at the checkout, but we can give Canadians more money in their pocket to help them afford the things they need and save for the things they want.

Bill C-78 proposes a two-month tax break to all Canadians, from December 14, 2024, to February 15, 2025. With a GST/HST exemption across the country, Canadians will be able to buy essentials like groceries, prepared foods, snacks, and kids’ clothing—all tax-free.

This new tax break will apply to:

• Prepared foods;
• Restaurant meals;
• Snacks;
• Children’s clothing, shoes, car seats, and diapers;
• Children’s toys;
• Books, print newspapers, and puzzles for all ages; and,
• Christmas trees.

By making essentially all food tax-free, this measure will deliver meaningful savings for Canadians, and provide real relief at the cash register.

This support is about helping middle class Canadians with a bit more money in their bank accounts to pay their bills and make necessary purchases. And, this is not a permanent structural measure. Inflation has now been within the Bank of Canada’s target range for all of 2024. This has allowed the Bank to bring down interest rates and that is why now is the right time to provide a little bit of relief for hard-working Canadians. 

Mr. Chair, I want to encourage all Senators to support Bill C-78 so we can make essentially all food and many holiday essentials tax-free.

This pragmatic tax relief is something we can all support—making life easier for Canadians and their families during the holiday season, when they tend to face higher than usual costs. By working together, we can help Canadians start the new year with more money in their pockets.

Thank you very much, and I am happy to take your questions.