Prime Minister Mark Carney is scheduled to reveal an expansion of the GST credit on Monday, as part of a broader set of affordability measures aimed at counterbalancing the escalating expenses of groceries. According to two undisclosed senior government sources, quarterly GST payments will see a 25% increase over the next five years, impacting around 12 million Canadians. Additionally, there will be a one-time 50% top-up in June under the program named the “Canada Groceries and Essentials Benefit.”
This initiative comes in response to mounting pressure from the opposition on Carney to tackle the surging costs of groceries, which are surpassing other inflation rates. Government estimates project that the one-time top-up coupled with the quarterly 25% increment could result in an extra $400 for a low-income single individual and $800 for a couple with two children this year.
Initial reports on the GST credit top-up surfaced from the Toronto Star. Besides this, other affordability measures are expected to be unveiled on Monday, focusing on remedying structural issues within Canada’s food supply chain and enhancing competition. The prime minister is slated to announce these measures in Ottawa on Monday morning before heading to meet Ontario Premier Doug Ford later in the day.