Carney's new GST rebate draws praise and questions

The federal government boosted the GST credit by 25% for five years, with a 50% increase in the first year, and paired the change with structural measures aimed at food production and competition; commentators welcomed its targeting but raised questions about the five-year timeline.

The federal government announced a 25% increase to the Goods and Services Tax (GST) credit for five years, including a 50% rise in the first year. The change is presented alongside structural measures intended to encourage greenhouse development, boost domestic food production and support the Competition Bureau. The opposition described the move as recycled policy and a temporary headline measure. Commentators note the policy aims to help low-income households and to be delivered quickly through existing systems. Key points: - The GST credit increase is 25% for five years, with a 50% boost in the first year. - The government paired the credit expansion with measures targeting greenhouse development, domestic food production and Competition Bureau enforcement. - Opposition voices dismissed the announcement as recycled or primarily symbolic. - Economists often regard GST credit top-ups as targeted, timely and temporary stimulus; the measure was used in 2020 and 2022. - Questions remain about the rationale for the five-year horizon and the political difficulty of ending the measure; one possible motive is limiting the reported impact on deficits and debt. Summary: The change provides near-term income support focused on lower-income households and increases the redistributive effect of the tax-and-transfer system. Its longer-term consequences hinge on trends in food prices, inequality and future political choices. Undetermined at this time.