Prime Minister Mark Carney is poised to reveal an enhancement to the GST credit on Monday as part of a broader range of measures aimed at alleviating the escalating cost of groceries. According to two senior government sources who requested anonymity, 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 on Carney from the opposition to tackle the soaring prices of groceries, which are surpassing other inflation rates. Government estimates project that the combined effect of the one-time top-up and the quarterly 25% increase could result in an extra $400 for a low-income single individual and $800 for a couple with two children this calendar year.
The report on the GST credit top-up was initially disclosed by the Toronto Star. The upcoming announcement on Monday will introduce further affordability measures, including strategies to address underlying issues in Canada’s food supply chain and enhance competition.
Carney is scheduled to unveil these developments in Ottawa on Monday morning before heading to meet with Ontario Premier Doug Ford later in the day.