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Freeland says the two-month GST holiday is meant to tackle the 'vibecession'

  • Nojoud Al Mallees

    Nojoud Al Mallees

  • Canadian Press

  • November 25, 2024

Deputy Prime Minister and Minister of Finance Chrystia Freeland holds a press conference at the National Press Theatre in Ottawa on November 25, 2024. THE CANADIAN PRESS/Sean Kilpatrick

OTTAWA -- 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.