Prime Minister Mark Carney is scheduled to reveal an enhancement to the GST credit on Monday, part of a comprehensive set of affordability initiatives aimed at counterbalancing the escalating costs of groceries. According to two anonymous senior government sources, quarterly GST payments will see a 25% increment over the next five years, impacting around 12 million Canadians. Additionally, there will be a one-time 50% bonus in June under the program named the “Canada Groceries and Essentials Benefit.”
This action comes in response to pressure from the opposition urging Carney to tackle the soaring prices of groceries, surpassing other inflation rates. Government estimates project that the combined effect of the one-time top-up and the quarterly 25% increase could translate to an extra $400 for a low-income single individual and $800 for a couple with two children this calendar year.
The news about the GST credit top-up was initially disclosed by the Toronto Star. Alongside this announcement on Monday, other measures pertaining to affordability will be unveiled, focusing on addressing systemic issues within Canada’s food supply chain and fostering competition. The prime minister is expected to make this declaration in Ottawa in the morning before proceeding to meet Ontario Premier Doug Ford later in the day.