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New food affordability measures are one piece of the puzzle
Summary
The federal government will boost GST rebates with a one-time top-up this year and phased 25% increases over the next five years; advocates say the measure is a useful step but may not be enough to end food insecurity.
Content
Prime Minister Mark Carney announced the Canada Groceries and Essential Benefit to help address rising grocery costs, building on the existing GST credit. Statistics Canada reports grocery prices have risen more than 27 per cent in the last five years, and the new measure includes an immediate top-up this year plus phased increases over the next four years. People interviewed at a grocery store expressed mixed reactions: some welcomed the support, while others said it might not be enough. Advocacy groups said the policy is a core piece of a larger effort to reduce food insecurity, but they remain cautious about its overall impact.
Key details:
- Statistics Canada reports grocery prices rose more than 27 per cent over the last five years.
- This year the government will provide a one-time GST rebate top-up, raising the annual amount for a family of four from $1,100 to $1,890 and for an individual from $540 to $950.
- Starting next year and over the following four years, the government plans to increase the GST rebate by 25 per cent, which the announcement says would raise a family of four to up to $1,400 a year and an individual to about $700.
- Conservative Leader Pierre Poilievre said his party will let the GST top-up pass Parliament.
Summary:
The announced benefit provides an immediate top-up this year and phased increases beginning next year as a way to help address rising grocery costs. Advocates and people affected welcome the attention to food affordability but say the measure alone may not be sufficient to eliminate food insecurity; the policy is set to move forward under the parliamentary timeline described.
