A New 'Grocery Rebate' Of Up To $234 Will Reportedly Go Out To Millions Of Canadians

© Provided by MTL Blog

CBC News reports the Government of Canada will announce a new payment for residents to counter high grocery costs due to inflation. The payment, which CBC's unnamed government source called a "grocery rebate," would reportedly mean an extra $234 for eligible individuals living alone and $467 for a family of four.

Details are few, but the CBC source says the rebate will be tied to the GST Credit, which gives back some of the money low-income residents pay in federal sales tax. Taxpayers are automatically considered for the GST Credit when they file. For payments in the 2022-2023 period, a given household had to have an income under $39,826 in 2021 to receive maximum credit amounts.

If the information in the CBC report is accurate, the grocery rebate would therefore amount to a payment equal to about 50% of the maximum 2022-2023 GST Credit payment for an individual, $467.

The federal government has already increased GST Credit payments once before. In 2022, eligible households got an extra payment equal to roughly 50% of their 12-month allocation.

The grocery rebate would only be the latest cash infusion from the government aimed at countering inflation — or at least placating frustrated residents amid rising costs. Canada is also giving an extra $500 to Canada Housing Benefit recipients. The deadline to apply is March 31, 2023.

In Quebec, residents making under $100,000 have already received two cash payments from the provincial government. A tax cut and increase to the Solidarity Tax Credit for low earners are also in the works.

Federal Minister of Finance Chrystia Freeland is set to present Canada's 2023 budget on Tuesday, March 28.