Tuesday’s federal budget will extend the temporary increase in the GST rebate for low-income Canadians, presenting the one-time measure as support in the face of rising food prices, The Canadian Press learned from a government source.
The government source, who spoke on condition of anonymity to discuss matters that won’t be public until Tuesday, said this budget will also include an increase in the limit for registered education savings plan withdrawals, which will increase from $5,000 to $8,000.
These measures, which will be part of the federal government’s plan to fight inflation, were first reported by CBC.
“For Canadians”
“A good part of the budget will be devoted to targeted measures for Canadians,” Prime Minister Justin Trudeau reiterated to reporters Monday afternoon, when asked about the GST refund.
“Grocery will definitely be part of that, but there are also other things that we will continue to do to be there for Canadians. »
The “grocery assistance” measure should not be tied to the actual bills at the supermarket checkout, but should instead be offered through the quarterly GST rebate.
Ottawa would still offer up to $234 for a single person without children, $467 for a couple with two children and $225 for an elderly person — the same amounts the government offered last fall with the one-time doubling of the reimbursement of the GST.
The New Democratic Party (NDP) had asked the Liberal government to extend this temporary measure.
“It’s a lot like what we asked for,” New Democrat Leader Jagmeet Singh told reporters Monday afternoon, reacting to reports of the GST rebate.
Mr. Singh credited the NDP for this reimbursement increase last fall and now.
The NDP has also called on the Liberals to provide federal funding for school meals in the budget.
Cost of life
Conservatives blamed Liberal government spending for high inflation that exacerbated Canada’s cost of living problems. Conservative Leader Pierre Poilievre has called on the government to match every dollar of new spending with cuts elsewhere in public finances.
In response to a question about the extension of the GST rebate, Tory MP Garnett Genuis said: “The money helps, but it doesn’t solve the main problem, which is runaway inflation at all levels. »
In advance of this budget, Finance Minister Chrystia Freeland has repeatedly promised targeted inflation-fighting measures for low-income Canadians.
“In the weeks ahead, for Canadians feeling the bite of rising prices the most, for our most vulnerable friends and neighbours, our government will provide additional, targeted inflation relief,” Ms.me Freeland last Monday in Oshawa, Ontario.
The planned GST rebate is intended to help low-income Canadians who experience sudden increases in the cost of food. In February, prices in grocery stores were 10.6% higher than a year ago.
The Liberals should also unveil their plans to tackle hidden or unexpected fees added to the prices of goods and services.
Tax credits for the “green economy”
In addition to helping reduce the cost of living, Minister Freeland has already indicated that the budget will include measures to maintain Canada’s competitiveness as part of the “green economic transition”.
Several sources, to whom The Canadian Press granted anonymity because they were not authorized to speak publicly about the budget, said there will be “significant” new tax credits for the green economy. In particular, there is talk of tax credits to stimulate growth in the production of critical ore and in the supply chain of electric vehicles.
The Liberals’ fall economic update already promised tax credits for hydrogen and clean electricity production.
Greater tax credits were promised to companies that pay fair wages and provide training for apprentices. Such incentives, inspired by the US Inflation Reduction Act, have never been used in Canada before.
But the Canadian government may well include such incentives in the future on most of the new tax credits promised for “green energy”.