Shoppers say federal grocery rebate welcome but won’t fully address affordability

Grocery shoppers say the new federal GST rebate will help make a dent in high prices, but it won’t address everything. CTV’s Josh Marano reports.

As grocery prices continue to climb across Canada, the federal government is introducing a boost to the GST credit, rebranded as the Canada Groceries and Essentials Benefit, aimed at easing household budgets for low-and-modest-income Canadians.

The government says the measure will put hundreds of dollars into the pockets of millions.

Prime Minister Mark Carney estimates the new payments will reach more than 12 million Canadians, with a low-income single adult potentially receiving an additional $400, and a couple with two children receiving up to $800 – raising the total annual credit for some families to $1,890. The payments are automatic, based on tax returns, with no application required.

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For Ami Smerek, the boost is welcome but doesn’t fully address ongoing affordability challenges.

“I used to not have to think about it as much when I went to get groceries, now I have to look at the prices and compare things,” Smerek says. “Groceries are very expensive now, and it’s really difficult to feed myself sometimes. Some extra money would definitely help out.”

Community organizations also say the need is growing. Carissa Davis with the Parkdale Food Centre says they’re seeing a real increase in demand.

“People just can’t afford groceries the way they used to,” Davis notes. “It is encouraging to see this government making this step towards having something that is kind of baked into our tax system.”

Opposition leader Pierre Poilievre says his party will support the move, but that it doesn’t go far enough.

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“The Prime Minister has revived a Trudeau-era rebate, which will at best barely cover a few trips to the grocery store,” Poilievre stated during Question Period.

The one-time GST credit boost is expected to be delivered in July 2026, with larger quarterly payment following.

The government emphasizes that eligibility is based on income, and no additional applications are required.