Madam Speaker, I am pleased to take part in today's debate and discuss the measures the government is taking to make life more affordable in Canada, especially as the holiday season approaches.
Inflation is way down and has been back within the Bank of Canada's target rate for 10 months in a row. Wage growth has now outpaced inflation for 21 consecutive months. Earlier this summer, the Bank of Canada lowered interest rates for the first time, making Canada the first G7 country to do so. It has since lowered interest rates three more times.
Although inflation and interest rates are falling, we know that Canadians are not yet feeling the effects on their household budgets. This is particularly true during the festive season. That is why, starting December 14, the government wants to give a tax break to Canadians, which the Conservatives oppose. The temporary two-month GST/HST exemption for select expenses means Canadians would be able to buy items like prepared food, snacks, children's clothing and toys, all tax free.
This means that a family spending $2,000 on qualifying goods during the relief period between December 14, 2024, and February 15, 2025, would realize GST savings of $100. This tax break would last until February 15. This would deliver meaningful savings for Canadians by making essentially all food GST/HST free and providing real relief at the cash register.