NDP Leader Jagmeet Singh has unveiled a new policy direction aimed at addressing affordability concerns, proposing a series of tax cuts for Canadian households and small businesses. Speaking at the Canadian Club of Toronto on Thursday, Singh pledged to eliminate the GST on “essential” items, including home heating, internet and cellphone bills, children’s clothing, diapers, and pre-made meals.
To fund the $5-billion annual tax cut, Singh proposed implementing an “excess profits” tax on large corporations, ensuring CEOs and major companies shoulder the burden. “New Democrats are going to give you a break on your daily essentials and monthly bills,” Singh declared to an audience of business leaders, unions, and students. “We’re gonna make the CEOs pay for it.”
Singh’s office estimates the plan will save the average household about $500 annually, with families with children expected to benefit even more. While the federal government would face a $5-billion revenue reduction, the NDP anticipates the “excess profits” tax, targeting corporations earning over $10 million in annual revenue, will more than offset the loss.
The proposal aligns with similar tax-cutting measures introduced by NDP premiers in Manitoba and British Columbia. Manitoba Premier Wab Kinew upheld Conservative-era tax cuts and temporarily suspended the province’s gas tax, while B.C. Premier David Eby campaigned successfully on delivering middle-class tax relief. However, Singh’s announcement marks the first time the federal NDP has included direct tax cuts for small- and medium-sized businesses in its platform.
“We should be treating large corporations very differently from smaller startups,” Singh said. “While we are proposing an excess profit tax on massive corporations, we want to lighten the tax load for small- and medium-sized enterprises to support their growth.”
Singh also criticized the Liberal and Conservative approaches to taxation, accusing both parties of favoring wealthy corporations over ordinary Canadians. In past elections, the NDP called for a 15 per cent “excess profits” tax, projected to generate $14.6 billion in revenue annually. Singh has hinted at similar measures for the upcoming federal election but has yet to provide specific details.
The NDP’s affordability plan comes amid heightened speculation about an early federal election. While the next election is officially slated for fall 2025, the NDP’s withdrawal from its supply-and-confidence deal with the Liberals this summer has destabilized the minority Parliament. Singh, however, has emphasized a cautious “vote-to-vote” approach to Parliamentary decisions as opposition parties push for a snap election.
The announcement underscores the party’s strategy to appeal to middle-class voters and small businesses while advocating for greater corporate accountability. “We’re fighting for fairness,” Singh said. “Our plan ensures everyone pays their share, and families get the relief they deserve.”