As promised in its last budget, Ottawa will help those less fortunate to pay their grocery bill by paying them a lump sum. Direct deposit is scheduled for this Wednesday. Those who qualify will receive between $234 and $628, depending on their family situation.
In reality, it is an enhanced payment of the GST credit, which has been given another name. The amount paid will be double the amount received last January.
Of course, those who receive the grocery rebate will be able to use the money as they see fit. No one will monitor how it was spent.
Note that it is possible to be eligible for the grocery rebate, but not for the July GST/HST credit payment, and vice versa. Because “the grocery rebate is calculated based on your 2021 tax return, but the next July 2023 quarterly GST/HST credit payment is calculated based on your 2022 tax return,” says the agency. Revenue Canada (CRA).
Taxpayers who are not registered for direct deposit will receive a check. Ottawa could also use the money to reduce a lingering tax debt.
The CRA is asking people who have not received their grocery refund by the due date to wait ten business days before contacting the CRA.
For the 2018 tax year, just under 11 million people claimed the GST\QST credit in the country. In 2023, a family with two children must have an income of no more than $62,175 to be eligible, according to the Research Chair in Taxation and Public Finance at the University of Sherbrooke.
Over the past year, the price of a grocery basket has jumped 9%, which compares to 3.4% for all goods and services in the country.