OTTAWA — Prime Minister Mark Carney announced a 25 percent increase to Canada's GST credit on Monday, renaming it the Canada Groceries and Essentials Benefit as part of a multibillion-dollar package targeting food affordability.
The five-year increase begins in July 2026. A one-time top-up equivalent to 50 percent of the current credit will also be issued this year. More than 12 million Canadians are eligible.
More money for families at the checkout
A family of four currently receiving about $1,100 annually will get up to $1,890 this year and roughly $1,400 per year for the following four years, according to the federal government. Single recipients will receive up to $950 this year and approximately $700 annually thereafter.
"Canada's new government is acting today to provide a boost to those Canadian families who most need one, while creating a bridge to longer-term food security and affordability," Carney said at a news conference in Ottawa.
The measures will cost $3.1 billion Canadian in the first year and between $1.3 billion and $1.8 billion in each subsequent year. The benefit was not included in last fall's budget.
Tackling rising grocery prices
Statistics Canada data released last week showed food prices rose 5 percent in December year-over-year. Coffee increased 30.8 percent and beef 16.8 percent. Overall consumer inflation stood at 2.4 percent.
Finance Minister François-Philippe Champagne said the government is taking action to provide immediate relief on groceries while strengthening domestic food production and supply chains.
The government committed $500 million from its Strategic Response Fund to help food businesses manage supply chain disruptions without passing costs to consumers. An additional $150 million will establish a Food Security Fund for small and medium enterprises. Food banks will receive $20 million through the Local Food Infrastructure Fund.
Helping farmers grow more food
To lower production costs, the government introduced immediate expensing for greenhouse buildings acquired after November 4, 2025, and available for use before 2030.
A National Food Security Strategy is being developed. It will include unit price labelling requirements to allow shoppers to compare products more easily and support Competition Bureau enforcement across food supply chains.
Agriculture Minister Heath MacDonald said the measures will support Canada's agriculture sector and strengthen food systems Canadians rely on daily.
Opposition offers conditional support
The Conservative Party said it would allow the rebate to pass but called it insufficient.
"This is a temporary measure," Opposition House Leader Andrew Scheer said, adding Conservatives want "a clean bill" without additions.
Conservative MPs Sandra Cobena and Vincent Ho urged the repeal of packaging taxes, the industrial carbon tax, and fuel standards, they said, adding 17 cents per litre to gas prices.
In a letter to Carney over the weekend, Conservative Leader Pierre Poilievre offered to help fast-track policies on groceries and other issues. Government House Leader Steven MacKinnon called on Poilievre to back the legislation when it reaches Parliament.
Nanos Research polling released last week showed inflation ranked as the third most important issue for Canadians at just under 10 percent, behind jobs and the economy, and U.S. relations.
The announcement came as Parliament resumed following its winter break.
