Prime Minister Mark Carney is scheduled to unveil an increase in the GST credit on Monday, as part of a broader set of affordability measures aimed at mitigating the escalating cost of groceries. According to two high-ranking government sources who requested anonymity, quarterly GST payments will rise by 25 percent over the next five years, impacting around 12 million Canadians. Additionally, there will be a one-time 50 percent top-up in June, under the program named the “Canada Groceries and Essentials Benefit.”
This initiative comes in response to mounting pressure on Carney from the opposition to tackle the soaring grocery prices that are surpassing other inflation rates. Government estimates project that the one-time top-up and the quarterly 25 percent increase could potentially result in an extra $400 for a low-income single individual and $800 for a couple with two children in the current calendar year.
The increase in the GST credit was initially disclosed by the Toronto Star. On Monday, alongside this announcement, other affordability measures will be revealed, including actions to address underlying issues in Canada’s food supply chain and enhance competition in the market. The prime minister is expected to make this announcement in Ottawa in the morning before heading to meet with Ontario Premier Doug Ford later in the day.
