Politics Prime Minister Mark Carney is preparing to announce an increase to the GST credit on Monday, as part of a broader set of affordability measures aimed at easing the burden of rising grocery costs.
Prime Minister Mark Carney arrives for a caucus meeting on Parliament Hill in Ottawa on Sunday. Carney is facing pressure from the opposition to tackle grocery prices, which have been increasing faster than other forms of inflation. (Patrick Doyle/The Canadian Press)
Prime Minister Mark Carney is preparing to announce an increase to the GST credit on Monday, as part of a broader set of affordability measures aimed at easing the burden of rising grocery costs.
Two senior government sources who requested anonymity said that quarterly GST payments will rise by 25 percent over the next five years, impacting roughly 12 million Canadians.
The plan will also feature a one-time top-up of 50 percent in June. This initiative will be named the “Canada Groceries and Essentials Benefit.”
This decision comes as Carney faces mounting pressure from opposition parties regarding grocery prices, which are surpassing other inflation rates.
Federal estimates indicate that this one-time boost, along with the quarterly increase of 25 percent, could provide an extra $400 this year for low-income individuals and $800 for couples with two children.
The news about the GST credit enhancement was first reported by the . There will be additional affordability initiatives announced on Monday, including efforts to address structural issues within Canada’s food supply chain and enhance competition.
The prime minister plans to make this announcement in Ottawa on Monday morning before heading off to meet Ontario Premier Doug Ford later in the day.
ABOUT THE AUTHOR
Kate Mc Kenna is a senior reporter with CBC’s parliamentary bureau in Ottawa, where she covers federal politics. She previously worked for CBC’s The Fifth Estate and has experience reporting from Halifax, Montreal, and Charlottetown newsrooms. Her investigative reporting has earned her five RTDNA awards. She’s also authored No Choice: The 30-Year Fight for Abortion on Prince Edward Island.
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