Prime Minister Mark Carney is preparing to reveal an expansion of the GST credit on Monday, as part of a broader set of affordability initiatives aimed at counteracting the escalating expenses of groceries. According to two undisclosed government sources, quarterly GST payments will surge by 25 percent over the next five years, impacting around 12 million Canadians. Additionally, there will be a one-time boost of 50 percent in June under the program named the “Canada Groceries and Essentials Benefit.”
This decision comes as Carney encounters pressure from the opposition to tackle the soaring grocery prices that are surpassing other forms of inflation. Government estimates project that the one-time top-up along with the quarterly 25 percent increase could result in an extra $400 this year for a low-income individual and $800 for a couple with two children.
The GST credit enhancement was initially disclosed by the Toronto Star. Furthermore, additional affordability measures will be unveiled on Monday, including initiatives to address structural issues within Canada’s food supply chain and enhance competition. The prime minister is scheduled to announce these updates in Ottawa on Monday morning before heading to meet with Ontario Premier Doug Ford later in the day.