Federal, provincial tax breaks for N.L. mean cheaper Christmas shopping

Certain items on your holiday shopping list will be cheaper in Newfoundland and Labrador this December, after the provincial government announced Thursday that it will match the federal government's GST/HST tax break between Dec. 14 and Feb. 15. 

That means toys, children's clothes, Christmas trees, alcohol, and many grocery items will become tax-free across the province for two months.

But NDP Leader Jim Dinn raised an eyebrow at the move after the legislature met Thursday.

Last week, his party proposed removing the provincial portion of HST from home heating in the House of Assembly, and the province voted no. He said Finance Minister Siobhan Coady couldn't understand why the NDP would propose a policy that would also benefit the rich.

Now, Dinn says the government is doing just that in its latest affordability measure. 

 "The only explanation I can have is that there was an ethereal visitation last night, and to me, it smacks of hypocrisy, or they've got a very good sense of irony," Dinn told reporters on Thursday.

He suspects an election is coming soon. Dinn said federal NDP Leader Jagmeet Sign proposed the federal government remove GST/HST on everyday essentials. Canada instead got a break.

"You know, there must be an election coming when they start stealing NDP ideas," Dinn said.

N.L. PC Leader Tony Wakeham said the revenue lost through the upcoming tax break could have been better used elsewhere.

"Instead of taking the HST or the GST off a bag of potato chips, why don't we take it off home heating fuel? Why didn't you take it off electricity rates?" he said. "Those things would really have an impact on people and help people all over Newfoundland and Labrador."

Wakeham believes the federal government caught the province by surprise. He said they matched the tax break for political points ahead of a provincial election.

"I think ... the premier found out about it yesterday," Wakeham said. "That's just an example of a government that's desperately trying to move up in the polls and get re-elected.

"I think the people of the province of Newfoundland and Labrador see right through that."

Coady said the province will forego tens of millions of dollars in revenue by eliminating their proportion of HST when the tax break is active.

Despite the loss, Coady said affordability matters.

"Even though our economy is good, our employment is good, people are still finding the pinch in their pockets. [This] will help them in the next number of months," she said.

The Department of Finance also anticipates the tax break will benefit businesses following the removal of HST and GST at restaurants.

"Restaurants and prepared foods are included, helping busy families when they go about their day-to-day activities," Coady said. "I would hope that this also spurs on restaurants and fast food restaurants and restaurants downtown, restaurants throughout the province. Certainly, this would be helpful to them as well."

People will be able to buy the following goods GST and HST free:

• Prepared foods, including vegetable trays, pre-made meals and salads, and sandwiches.
• Restaurant meals, whether dine-in, takeout or delivery.
• Snacks, including chips, candy and granola bars.
• Beer, wine, cider and pre-mixed alcoholic beverages below 7 per cent alcohol by volume (ABV).
• Children's clothing and footwear, car seats and diapers.
• Children's toys, such as board games, dolls and video game consoles.
• Books, print newspapers and puzzles for all ages.
• Christmas trees.

"I'm hoping that people will get out there and take advantage of that," Coady said.

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