A source says Tuesday’s federal budget will extend the temporary increase in the GST rebate for low-income Canadians, presenting the one-time benefit as support in the face of rising food prices.
The government source, who spoke on condition of anonymity to discuss matters that will not be public until Tuesday, said this budget will also include an increase in the withdrawal limit for a registered education savings plan, which will increase from $5000 to $8000.
These measures, which will be part of the federal government’s plan to fight inflation, were first reported by the CBC.
Thus, “grocery assistance” should not be tied to actual supermarket bills, but should instead be administered through the GST rebate system.
The New Democratic Party (NDP) had asked the Liberal government to extend this measure.
In advance of this budget, Finance Minister Chrystia Freeland has often promised targeted inflation-fighting measures for low-income Canadians.
“In the weeks ahead, for the Canadians who are feeling the bite of rising prices the most, for our most vulnerable friends and neighbors, our government will deliver additional, targeted inflation relief,” Ms. Freeland said Monday. last, in Oshawa, Ontario.
The planned GST rebate is intended to help low-income Canadians who experience a sudden increase in the cost of food at the grocery store. In February, prices in grocery stores were 10.6% higher than a year ago.
The Liberals should also outline their plans to tackle hidden or unexpected fees added to the price of goods and services.
In addition to helping reduce the cost of living, Minister Freeland signaled that the budget will include measures to keep Canada competitive 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. We are talking in particular about tax credits to stimulate growth in the production of critical ore and in the supply chain of electric vehicles.
The Liberals’ fall economic update had already promised tax credits for hydrogen and clean electricity generation.
Greater tax credits were promised to companies that pay fair wages and provide training for apprentices. Such incentives were inspired by the US Inflation Reduction Act and have never been used in Canada before.
But the Canadian government may well include such incentives in the future on most new tax credits promised for “green energy.”
