An upcoming goods-and-services tax holiday is welcome news for Albertans and all Canadians, say economists, but issues surrounding affordability will likely persist across the country long-term.
Prime Minister Justin Trudeau announced on Thursday that the federal government will remove the goods and services tax for two months starting Dec. 14 on a large amount of items.
That means Albertans will save five per cent on items such as children’s clothing and shoes, toys, diapers, restaurant meals, beer and wine, several snack foods, beverages and video game consoles. The break which is expected to cost Ottawa $1.6 billion will also apply to Christmas trees, both natural and artificial.
It’s a welcome announcement for lower-income Canadians, says Moshe Lander, an Alberta-based economist with Montreal’s Concordia University, as “the burden of the tax falls heavier on lower income than higher income Canadians.”
He says it’s …