Norbert Cunningham: Is this tax holiday legal?

If you have a subscription, for home delivery of print newspapers or magazines you can access content without any limits by activating your online access today!

A few days following the Bank of Canadas substantial reduction, in its prime interest rate to curb inflation concerns; however; this scenario seems less probable now in the near term.

There has been a concerning increase in food prices that has raised worries, about our top three grocery chains engaging in price hikes and unfair profits yet by Thursday these chains might have felt relieved as a more scandalous and significant matter came up.

Enough the latest concern also touches upon the rising costs of food.Prime Minister Justin Trudeau has made an announcement.Although he previously downplayed any issues with food price inflation in 2023.Trudeau has now shifted his stance. Proposed a somewhat chaotic two month suspension of GST, on his own accord.This move seems to affect the HST and might potentially violate the Articles of Confederation since 1867.

Trudeau along with his finance minister and other parties like the NDP seem unaware of the principles that define the division of powers between the federal government and the provinces. They intend to disregard the right of all provinces to fully control direct provincial taxes including those, on consumer goods. This straightforward language and subsequent due process have further solidified this fact.

This falls under one of the 16 areas managed by the province alone – the harmonized sales tax collection remained unaffected by this change.Under Ottawas disorderly and confusing tax system it transitioned to a more uniform and easier to understand model for goods and services.This shift was successful in persuading provinces to embrace an approach for their own goods and services.However a consensus, among provinces was crucial for this transition to be effective.