Prime Minister Mark Carney is scheduled to reveal 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% over the next five years, impacting around 12 million Canadians. Additionally, a one-time top-up of 50% is slated for 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 surging prices of groceries, surpassing other inflation rates. Government estimates project that the combined one-time top-up and quarterly 25% increase could result in an extra $400 for a low-income single individual and $800 for a family of four this year.
The plan to enhance the GST credit was initially disclosed by the Toronto Star. Further affordability measures are expected to be unveiled on Monday, focusing on rectifying structural issues within Canada’s food supply chain and enhancing competition. Carney is slated to deliver this announcement in Ottawa on Monday morning before heading to meet with Ontario Premier Doug Ford in the afternoon.
