Prime Minister Mark Carney is poised to reveal an increase in the GST credit on Monday, as part of a broader set of affordability measures to counterbalance the escalating cost of groceries. According to two anonymous senior government sources, quarterly GST payments will see a 25% boost 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.”
The decision comes amid mounting pressure on Carney from the opposition to tackle the surge in grocery prices surpassing other inflation rates. Government estimates indicate that the combined one-time and quarterly increases could result in an extra $400 for a low-income single individual and $800 for a couple with two children this year.
The GST credit top-up was initially disclosed by the Toronto Star. Further affordability measures, including initiatives to address structural issues in Canada’s food supply chain and enhance competition, will also be unveiled on Monday. The prime minister is scheduled to announce these measures in Ottawa in the morning before meeting with Ontario Premier Doug Ford later in the day.