Bill C-78 (Historical)

Tax Break for All Canadians Act

An Act respecting temporary cost of living relief (affordability)

This bill is from the 44th Parliament, 1st session, which ended in January 2025.

Sponsor

Chrystia Freeland Liberal

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

This enactment amends the Excise Tax Act in order to implement a temporary GST/HST holiday between December 14, 2024 and February 15, 2025 inclusively in respect of certain taxable supplies.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-78s:

C-78 (2018) Law An Act to amend the Divorce Act, the Family Orders and Agreements Enforcement Assistance Act and the Garnishment, Attachment and Pension Diversion Act and to make consequential amendments to another Act

C-78 (2005) Emergency Management Act

Votes

Nov. 28, 2024 Passed 2nd reading of Bill C-78, An Act respecting temporary cost of living relief (affordability)

Debate Summary

This is a computer-generated summary of the speeches below. Usually it’s accurate, but every now and then it’ll contain inaccuracies or total fabrications.

Bill C-78 amends the Excise Tax Act to implement a temporary GST/HST holiday between December 14, 2024, and February 15, 2025 on certain qualifying goods such as children's clothing, diapers, food, books, and Christmas trees. The goal is to provide tax relief to Canadians during the holiday season, with an estimated $1.6 billion in federal tax savings. While supporters believe this will stimulate the economy and offer needed savings, critics argue it is a short-term gimmick that will disproportionately benefit larger businesses and may create administrative burdens for smaller retailers.

Liberal

Supports tax relief measures: The member supports the bill's tax relief measures, especially the removal of HST on children's diapers and GST/HST from a variety of goods, which he believes will benefit hard-working Canadians and provide economic stimulus.
Positive economic impact: The member cites economists and the Retail Council of Canada, who believe the tax relief will boost GDP growth and provide major tax savings for Canadians.
Benefits local businesses: The member believes the bill will benefit local restaurants in his riding, especially during slower periods, due to the GST/HST removal.
Reversal of previous policies: The member highlights the current government's reversal of the previous government's decision to raise the retirement age, as well as the implementation of middle-class income tax cuts and the Canada child care plan, as examples of the government's commitment to supporting Canadians.

Conservative

Bill is a tax trick: The member argues that the proposed tax break is a temporary, two-month tax trick designed to cover up the government's incompetence and the pain and suffering it has caused over the last nine years. He says it would rather take pennies off of snacks than axe the carbon tax to actually bring down the cost of groceries.
Hurts small business: The member contends that the tax trick will disproportionately benefit big businesses and online giants while burdening small businesses with costly and complicated implementation processes, potentially costing them between $1,000 and $1,500 due to the need to change their POS systems.
Highlights economic decline: The Conservatives believe that Canada is not the country it once was, citing a cost of living crisis, increased food bank usage, rising poverty, and a struggling housing market as evidence of the Liberal-NDP government's incompetence and its negative impact on Canadians.
Axe the carbon tax: The Conservatives propose to bring real relief by axing the carbon tax, reducing the cost of gas, groceries, and home heating, and eliminating the sales tax on newly built homes under $1 million, aiming to stimulate the economy and address the housing crisis.

NDP

Supports temporary GST holiday: The NDP will vote for the temporary GST holiday because families need relief, even if it's not ideal. However, the NDP advocates for a permanent solution to remove GST from daily essentials and monthly bills, offering more substantial and lasting support.
Short-term relief is insufficient: The Liberal government's temporary GST holiday and one-time payment are insufficient and exclude vulnerable Canadians. The NDP criticizes the Liberals for not including essential items like home heating and cellular bills in the GST holiday, and for excluding seniors and people with disabilities from the one-time payment.
Corporate profiteering is the cause: The NDP identifies corporate price gouging, not wages or consumer demand, as the main driver of inflation. They highlight the surge in corporate profit margins and advocate for a fair taxation system where corporations pay their share, and suggest implementing an excess profits tax to fund tax cuts for essential goods.

Bloc

Against the GST holiday: The Bloc is against the GST holiday, calling it a gimmick that will have little benefit for the people, especially those with low incomes who spend their money on necessities that are already tax-free.
Benefits the wealthy: The GST holiday will primarily benefit the well-off, who can afford luxury items like expensive alcohol, while doing little for those struggling to afford basic necessities.
Negative impact on businesses: The measure will negatively impact small business owners, who will struggle to reconfigure their cash registers and deal with the complexities of the temporary tax change, costing them time and money.
Contempt for the provinces: The federal government showed contempt for the provinces by failing to consult them before announcing the GST holiday, and also failed to consider compensating Quebec for the costs associated with implementing the measure.

Green

Unfair and poorly targeted: The Green Party finds the GST tax holiday to be an untargeted measure that does not address the needs of those most vulnerable, such as seniors on fixed incomes and people with disabilities. The party criticizes the initiative for being a short-term, two-month measure that feels like a vote-buying scheme rather than a comprehensive solution.
Missed opportunity: The speaker argues that the $1.6 billion cost of the GST tax holiday should be offset by implementing an excess profit tax on large grocery stores and oil companies, using the funds to directly support those in need. They suggest that without such measures, the policy falls short of addressing the root causes of economic hardship and corporate greed.
Need comprehensive solutions: The Green Party believes that instead of temporary tax breaks, Canada needs comprehensive policies to eliminate poverty, ensure food security, and invest in social programs. They advocate for a national, guaranteed livable income to create lasting change and demonstrate a caring society.

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Tax Break for All Canadians ActGovernment Orders

November 28th, 2024 / 10:35 p.m.

Conservative

Kelly Block Conservative Carlton Trail—Eagle Creek, SK

Mr. Speaker, what we have before us is a tax trick and that member called it a vote buy. Through you, should all members not vote against this?

Tax Break for All Canadians ActGovernment Orders

November 28th, 2024 / 10:35 p.m.

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, fortunately for me, in the Green Party, nobody tells me how to vote. This is a tough one. I would share with my friend from Carlton Trail—Eagle Creek, that I am sure she can think of people in her community who will wonder why she did not vote for this because they would have liked to have this.

I am sorry, but that is the reality. We need to think about the individuals who will hear about this on the news and think, “I needed that. I wanted that, and that would have made my Christmas better”. For those people, I feel very much as though we should go along with this, but fight to make sure that we can pay for it and that we do better by aiming for a permanent change to help those people.

Tax Break for All Canadians ActGovernment Orders

November 28th, 2024 / 10:35 p.m.

The Speaker Greg Fergus

It being 10:39 p.m., pursuant to order made earlier today, every question necessary to dispose of the second reading stage of Bill C‑78 is deemed put, a recorded division is deemed requested, and the division shall not be deferred.

Call in the members.

(The House divided on the motion, which was agreed to on the following division:)

Vote #904

Tax Break for All Canadians ActGovernment Orders

November 28th, 2024 / 11:20 p.m.

The Speaker Greg Fergus

I declare the motion carried.

Accordingly, pursuant to order made earlier today, this bill is deemed referred to a committee of the whole, deemed considered in committee of the whole, deemed reported without amendment, deemed concurred in at report stage and deemed read a third time and passed.

(Bill read the second time, considered in committee of the whole, reported, concurred in, read the third time and passed)

Tax Break for All Canadians ActGovernment Orders

November 28th, 2024 / 11:20 p.m.

The Speaker Greg Fergus

The hon. government House leader is rising on a point of order.

Tax Break for All Canadians ActGovernment Orders

November 28th, 2024 / 11:20 p.m.

Burlington Ontario

Liberal