Budget 2023 will target grocery affordability with new tax rebate: sources – National | 24CA News
The federal authorities will announce a brand new tax rebate within the 2023 price range on Tuesday aimed toward making fundamental requirements extra reasonably priced for some Canadians, authorities sources tells Global News.
What the federal government is asking a “grocery rebate” shall be delivered via the GST tax credit score mechanism and shall be based mostly on family earnings, in response to two authorities sources who spoke on background as a result of they weren’t approved to talk publicly concerning the price range previous to its launch.
An common household of 4 with two youngsters would obtain $467, whereas a single Canadian could be eligible for $234 in rebates.
Read extra:
What to count on from price range 2023 as ‘storm clouds’ collect over Canada’s economic system
The transfer comes amid hovering meals inflation, although a supply stated the federal government received’t be checking to ensure it’s spent on groceries.
An estimated 11 million Canadian households of low or modest earnings are anticipated to profit from the rebate.
The earnings threshold is anticipated to be the identical as for the prevailing GST tax credit score and based mostly on eligibility as of January 2023.
The price ticket for the measure is anticipated to come back in north of $2 billion in Tuesday’s price range.
Finance Minister Chrystia Freeland has promised in pre-budget speeches that the 2023 spending plan would come with “targeted” assist for weak Canadians after a 12 months of decades-high inflation and rising rates of interest placing strain on households.
While general inflation has cooled in latest months, the value of meals bought from the grocery retailer continues to soar.
The annual inflation price for meals offered on the grocery retailer was 10.6 per cent in February, in response to Statistics Canada — greater than double the general inflation price of 5.2 per cent for the month.
— with information from Global News’ Bryan Mullan, Mercedes Stephenson
© 2023 Global News, a division of Corus Entertainment Inc.
