Canada announces two-month GST holiday to combat economic downturn

OTTAWA - Finance Minister Chrystia Freeland announced a two-month suspension of the goods and services tax (GST) starting December 14. This measure aims to address a perceived economic downturn, referred to as a "vibecession." The GST holiday will apply to various items to help Canadians cope with rising costs. Additionally, the government plans to distribute $250 cheques in the spring to eligible workers who earned up to $150,000 in 2023. These initiatives are expected to cost the federal government $6.3 billion. Freeland noted a gap between positive economic indicators and public sentiment, which the tax cut aims to bridge.