The boost is part of a new affordability plan aimed at easing grocery costs for Canadians. (Courtesy: THE CANADIAN PRESS/Adrian Wyld)
Prime Minister Mark Carney is rolling out a new affordability plan, and it includes more money back for Canadians through a bigger GST rebate, just as Parliament prepares to return.
Speaking at a grocery store in Ottawa on Monday, Carney announced the rebate will increase by 25 per cent over the next five years under a new program called the Canada Groceries and Essentials Benefit.
With food prices still high, Carney said many Canadians are feeling the squeeze and need extra help. He says the change will put hundreds of additional dollars into the pockets of more than 12 million people across the country.
The increase is set to start later this year. On top of that, the federal government plans to send out a one-time payment worth half of the credit to help families right away.
Right now, a family of four gets about $1,100 a year through the GST rebate. Under the new plan, that family would receive $1,890 in the first year, followed by about $1,400 each year for the next four years.
Carney says the payments are meant to help offset higher grocery bills since the pandemic. He also says the government is working on longer-term fixes aimed at tackling inflation and bringing food prices down.
