NDP to pledge to remove GST on internet, heat, diapers, and more

OTTAWA — With the cost of living playing a central role in provincial elections across Canada and in the U.S. presidential race, NDP Leader Jagmeet Singh is set to unveil a pre-campaign policy plank for the next federal election to differentiate his party from the governing Liberals.

Singh is expected to announce this morning that an NDP government would remove the GST on what his party deems “essentials.”

This includes pre-made meals and foods at grocery stores, clothing for children under 15 years old, diapers, home heating, and cellphone and internet bills.

Some provinces like Ontario already exempt certain items like children’s clothes and some prepared grocery items from the provincial share of the HST or provincial sales tax.

These exemptions are not universal, though, and Saskatchewan added sales tax to prepared grocery meals and children’s clothing as part of its 2017 budget.

Singh is set to make the announcement at an address to the Canadian Club in Toronto this afternoon.

A senior NDP official who was not authorized to speak publicly about the proposal says the party estimates this would save the average household about $500 annually.

The policy would cost the federal government about $5 billion in lost tax revenue, according to the official, which the party says it would recover through a proposed “excess profit tax.”

During the 2021 election, the NDP campaigned on a promise to increase the corporate tax rate back to the 2010 level of 18 per cent, up from the current rate of 15 per cent.

The Canadian Club discussion event, where Singh is the only billed speaker, is focused on “re-establishing the middle class” as a starting point for Canada’s economic growth.

The Canadian Club is a public policy forum that regularly hosts speaking events with politicians, business leaders, leading scientists, non-profit heads and others.

For much of the current minority parliament, the NDP has propped up the Liberals through a supply-and-confidence agreement. Under that deal, the Liberals agreed to work on NDP priorities like dental care and pharmacare programs in exchange for support on confidence votes.

Singh pulled out of the agreement at the start of September, and the date of the next election is now largely within the NDP’s control.

The Conservatives have tried to bring down the minority government twice since that partnership fell apart with unsuccessful non-confidence motions.

The Bloc Québécois then outlined policy priorities they wanted to see the Liberals adopt, centred on increasing old age security payments for some seniors and safeguarding supply management from future trade talks.

The Bloc’s deadline to implement these policies has passed, and leader Yves-François Blanchet says his party is in negotiations to bring down the government. It is likely the Conservatives, Bloc and NDP would all need to vote in favour of a non-confidence motion in order to topple the government.

The next election must happen by Oct. 20, 2025, but it could take place sooner if the Liberals lose the support of the House of Commons.

This report by The Canadian Press was first published Nov. 14, 2024

David Baxter, The Canadian Press