Canada announces increase in GST benefits to control the cost of living

 

 

Prime Minister Mark Carney has officially announced the ‘Canada Groceries and Essentials Benefit’, an innovative program designed by the Liberal government to reduce the financial burden of ordinary Canadians. According to the announcement made at the start of the winter session of Parliament, the country’s GST credit will be increased by 25 per cent over the next five years. The primary objective of this measure is to provide relief to low-income earners from rising food prices. With the approval of the legislature, an eligible family of four will receive financial assistance of up to $1,890 this year, and individuals up to $950. The Prime Minister stated that more than 12 million Canadian citizens will directly benefit from this program.

In addition to this program, which is expected to cost $11.7 billion over six years, the government will also impose strict regulations aimed at preventing unfair price increases in the market. The unit price labeling system will be mandatory to end shrinkflation, a practice that keeps prices low by reducing the quantity of products. In addition, $650 million in financial assistance has been allocated to the business sector to address supply chain disruptions, and a special fund of $20 million for local food storage centers. Through this comprehensive package, the government aims to overcome the challenges created by global trade crises and climate change in the domestic market and ensure the financial security of consumers.