The NDP has announced plans to remove the GST from essential items if elected in the next federal election. The proposal covers pre-made meals, groceries, children’s clothing under 15, diapers, home heating, and cellphone and internet bills. The party estimates this would save households about $500 annually.
To offset the $5 billion in lost tax revenue, the NDP plans to introduce an “excess profit tax.” This proposal builds on their previous efforts, such as a failed 2023 motion to remove GST on home heating.
NDP Leader Jagmeet Singh also emphasized support for small and medium-sized businesses, signaling possible tax cuts for them.
The rising cost of living has dominated political discussions, with affordability a top concern for Canadians. The federal election must happen by October 2025, but it could occur sooner if the minority Liberal government loses support in Parliament.
Written by Jeremy Hall