The NDP Wants To Extend The Temporary GST Increase & Here's What That Might Mean For Canadians

It's not in effect, or formally proposed, but it's a nice thought.

Staff Writer
Jagmeet Singh speaks to constituents in Halifax. Right: A pile of Canadian money.

Jagmeet Singh speaks to constituents in Halifax. Right: A pile of Canadian money.

Jagmeet Singh's NDP wants to extend the temporarily doubled Goods and Services Tax (GST) credit, according to statements Singh made in an interview with the Canadian Press. The GST credit typically grants additional money to low-income Canadian residents, offsetting the financial pressure of paying federal taxes.

It was doubled in 2022 over six months, meaning eligible Canadians received twice as much from the government during one of the two pay periods between which the GST payment is split.

This means that it's not quite a true doubling of the tax credit: eligible Canadians received twice as much during only one pay period, which adds up to 1.5 times the typical GST credit across the entire year. That meant an increase of several hundred dollars in tax credits for most GST-eligible Canadians.

Extending that additional cash "is something that we're going to use our power on,” Singh told the Canadian Press, adding that “It's not in our agreement, but the agreement gives us the leverage to push for things like that.”

He's talking about the confidence-and-supply agreement the NDP has made with the Liberal party, which didn't explicitly mention the GST credit extension, but did ask for more dental coverage for at-risk groups including seniors and young teens, per the Canadian Press.

Conservatives, meanwhile, are pushing for lower taxes, which Singh sees as "proposing to increase the pain."

"People are already going through pain," Singh told the Canadian Press. "They're already feeling squeezed and hurt. And they're saying, 'Cut things to make it even harder on people.”'

This article's cover image was used for illustrative purposes only.

Willa Holt
Staff Writer
Willa Holt is a Staff Writer for MTL Blog, often found covering weird and wonderful real estate and local politics from her home base in Montreal.
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