Prime Minister Mark Carney announced a suite of measures on Monday aimed at reducing grocery costs, including an expanded rebate for low-income Canadians and investments to strengthen food supply chains.
The government will increase the GST credit by 25% for five years starting July 2026 and provide a one-time 50% top-up payment by June. The revamped benefit, renamed the Canada Groceries and Essentials Benefit, will deliver up to $1,890 this year for a family of four, with roughly $1,400 annually for the next four years.
Single individuals will receive up to $950 this year and approximately $700 yearly over the same period. The program will support more than 12 million Canadians.
Carney made the announcement from an Ottawa grocery store as food inflation reached 6.2% in December, outpacing overall inflation at 2.4%.
Beyond the rebate, the government allocated $500 million from the Strategic Response Fund to help businesses absorb supply chain disruption costs without passing them to consumers. Ottawa will also allow businesses to write off greenhouse building costs upfront to boost domestic food production.
The government will implement unit price labeling to combat shrinkflation and direct the Competition Bureau to strengthen market oversight. Carney said the measures aim to provide “immediate relief on groceries and essentials” while building long-term food system resilience.
The government will provide $20 million to the Local Food Infrastructure Fund to support food banks and will develop a National Food Security Strategy addressing production, distribution, and northern food insecurity.
Conservative House Leader Andrew Scheer called the GST increase a “recycled Trudeau-era policy” that provides only temporary relief, though he said Conservatives would support the measure. Former Prime Minister Justin Trudeau doubled the GST rebate for six months in 2022.
NDP MP Alexandre Boulerice told reporters the proposal represents “a good start” but “not going to be enough.”
The Canada Revenue Agency will deliver payments automatically to 2024 tax filers if Parliament approves the measures.
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