The Government of Canada just announced that they’re working toward making groceries and other essentials more affordable. The announcement came on Monday, January 26, and included a list of measures that Prime Minister Mark Carney is introducing in order to mitigate the growing cost of living in Canada.
Among these measures is an increase to the Goods and Services Tax (GST) Credit that the Government of Canada says will provide support to Canadians.
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Putting Money Into Canadians’ Pockets
It’s no surprise to anyone that Canada has become an increasingly expensive place to live. The BC Consumer Debt Study recently reported that the top reason for B.C. citizens’ debt is because of cost-of-living, rather than general financial mismanagement. According to the study, 26.9% of those surveyed reported their debt was due to their income not covering basic cost-of-living expenses. When asked about which expenses take up most of their budgets, the top answer was groceries, as well as gas and rent.
Carney’s announcement notes that “the global landscape is rapidly changing, leaving economies, businesses, and workers under a cloud of uncertainty.” But, Canada will be shifting from “reliance to resistance.”
“To ensure Canadians have the support they need right now, the government has introduced a series of new measures to bring down costs – including cutting taxes for 22 million Canadians, supercharging homebuilding, and protecting and expanding vital social programs.”
GST Increase In Canada
Part of these measures is the brand-new Canada Groceries and Essentials Benefit, formerly the GST Credit. Its amount will be increased by 25% for five years, beginning in July 2026.
Moreover, the Government of Canada will be providing a one-time payment, equivalent to a 50% increase this year.
“Combined, this means that a family of four will receive up to $1,890 this year, and about $1,400 a year for the next four years; and a single person will receive up to $950 this year, and about $700 a year for the next four years,” writes the announcement. Over 12 million Canadians will receive the new Canada Groceries and Essentials Benefit, “provid[ing] additional, significant support.”
