Prime Minister Mark Carney is preparing to announce a significant increase to the Goods and Services Tax (GST) credit. This announcement comes as part of a broader initiative to address rising grocery costs faced by Canadians.
Details on the Grocery Rebate Program
On Monday morning, Carney will unveil the “Canada Groceries and Essentials Benefit” during an event in Ottawa. The program aims to provide immediate relief to citizens struggling with grocery prices that have surged above general inflation rates.
Key Features of the Program
- Quarterly GST payments will rise by 25% over the next five years.
- A one-time top-up of 50% will be delivered in June 2026.
- Approximately 12 million Canadians are expected to benefit from the program.
- An estimated $400 will be added for single low-income individuals this calendar year.
- Couples with two children may receive an additional $800.
These measures come in response to mounting pressure from the opposition regarding grocery prices. Federal data indicates that the costs associated with food items have outpaced general inflation trends, prompting the need for government intervention.
Additional Affordability Measures
In addition to the increased GST credit, Carney is expected to announce further steps aimed at resolving structural issues in Canada’s food supply chain. Enhancements to competition within the grocery sector will also be part of the strategy, seeking to increase affordability for consumers.
Meeting with Ontario Premier
After the announcement, Carney plans to meet with Ontario Premier Doug Ford to discuss collaborative strategies on this pressing issue.
These initiatives reflect the government’s commitment to tackling economic challenges and ensuring that Canadians can access affordable food options.
