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Sheer says that the conservative bloc will support the liberal goods and services tax discount plan.

Sheer says that the conservative bloc will support the liberal goods and services tax discount plan.

By Omayma othmani

Published: September 25, 2022

Conservative House Leader Andrew Scheer says the caucus of Pierre Poilievre will support the Liberal government's bill to temporarily double the Goods and Services Tax credit. After days of Conservative MPs making comments indicating they would back the legislation, Scheer confirmed in a CTV question period interview that it would be so, saying: "Putting tax money back into Canadians' pockets is something Conservatives have long supported."

The legislation – Bill C-30, the Cost of Living Relief Act, No. 1 (Targeted Tax Relief) – was one of two bills introduced by the Liberals last week to implement measures the government says will help low- to modest-income households cover their expenses amid ongoing inflation and concerns about the cost of living. The bill amends the Income Tax Act to allow for doubling the Goods and Services Tax credit for six months. The government also says nearly 11 million individuals and families will get a boost through the increased GST credit, which is expected to provide $2.5 billion in additional funding for current recipients by the end of the year if the bill is passed in time.

The credit is inflation-adjusted, a non-taxable payment paid quarterly to low- and modest-income individuals and families, intended to help offset the Goods and Services Tax / Harmonized Sales Tax they pay, with the rebate amount dependent on income. According to the government, increasing the credit means that single Canadians with no children will get up to an additional $234, couples with two children will receive up to an additional $467, and seniors, on average, will receive an additional $225. Inflation has reached its highest level in 40 years, and Canadian families are really struggling due to inflation numbers fueled by the deficit that literally raise the cost of everything, while Scheer said on the same matter: "We will oppose new spending components, but we support tax cuts," referring to their decision not to back a second piece of affordability legislation that would enact dental benefits in addition to higher benefits - even for renters.

Debate has already begun on the two bills, and initial votes to pass them to the next stage of legislative scrutiny could come soon with the Liberals pushing to see both pass through the Senate and receive royal assent before the end of the year. It will also be the ultimate test of Conservative support when they have to stand up in the House of Commons and vote yes or no. In a separate interview with CTV, Government House Leader Mark Holland defended the government's affordability plans as helping those most affected by inflation.

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