Canada to Boost GST Credit 25% Over Five Years

OTTAWA - The Canadian federal government plans to boost the GST credit by 25 percent over the next five years and provide a one-time payment to eligible recipients this spring, a move estimated to cost 12.4 billion dollars through 2031, according to a new analysis from the Office of the Parliamentary Budget Officer.

Prime Minister Mark Carney announced the affordability measures last week, aiming to ease the burden of rising grocery prices on lower-income households. The one-time payment, equivalent to 50 percent of the annual GST credit, is projected to cost more than three billion dollars in the current fiscal year. The ongoing credit increases are expected to add between 1.7 billion and 1.9 billion dollars annually until 2031.

The GST credit, a quarterly payment designed to offset the goods and services tax for low- and modest-income families, currently supports millions of Canadians. Under the proposed changes, more than 12 million people would qualify for the enhanced benefits, which would be distributed through the Canada Revenue Agency starting in the spring. Officials have not yet specified the exact amount of the one-time payment, but it would scale based on income...