Local non-profit groups have expressed both elation and concern about the federal government’s tax credit boost announced earlier this week.
The federal Liberal Government plans to increase the GST rebate, boosting financial support for 12 million low-income Canadians.
Called the “Canada Groceries and Essentials Benefit,” the temporary boost takes effect this July and lasts for five years. Additionally, a one-time payment equivalent to a 50 per cent increase will be given to eligible Canadians this year.
According to the prime minister’s official press release, a family of four will receive up to $1,890 this year, and $1,400 annually over the next four years. Individual rebates are expected to reach $950 this year and $700 in the next four years.
“One of the best things about Canada is that you don’t have to be born rich to succeed,” said Prime Minister Mark Carney when making the announcement on Tuesday. To protect that fundamental value, we are building a stronger economy…bringing in new measures to lower costs and make sure Canadians have the support they need now.”
A great step forward, but more needs to be done, say Calgary groups
The head of Brown Bagging for Calgary’s Kids called the announcement great news.
“It will make a difference for families,” said Bethany Ross, the organization’s executive director. “Anything that governments can do to ensure Canadians have access to more money to buy the food they need is a good thing.”
But Ross believes the boost in federal money is not enough to close the gap between what low-income Calgarians can afford and the spiralling cost of groceries.
According to a TD Economics report, grocery prices in Canada are 30 per cent higher than in 2019, and although this is largely due to international factors, Canada’s food inflation is worse than that of our American counterparts.
President and CEO of the Calgary Food Bank, Melissa From, agreed that it’ll take more than a boost in tax credit to make a major difference for families in Alberta’s largest city.
“There may be some folks who come a little bit less often,” said From. “But I don’t believe that this benefit will be enough that there will be households that never come back to the food bank.”
Need for food continues to increase
Demand for the food bank, added Fromm, continues to grow, with nearly 175 more families relying on their support than this time last year.
The head of Vibrant Communities Calgary, a local non-profit whose mission is to reduce poverty, stresses that food insecurity in the city has reached crisis levels.
Across Alberta, added Dani DeBoice, the organization’s executive director, one in three Albertans lives in a food-insecure household — the highest rate in the country.
DeBoice described the GST rebate boost as a “welcome step that will provide meaningful, immediate relief for households under financial strain,” though she too advocates for lasting support.
“Sustained action to address poverty and its root causes will be critical to reducing food insecurity over the long term,” she added.