DR. JACK MINTZ
President’s Fellow at the School of Public Policy,
University of Calgary

The Goods and Services Tax (GST) credit was originally designed to make the consumption tax progressive by rebating the amount paid by low‑income households, and groceries have long been exempt from GST/HST. In April 2024 the credit was renamed the Canada Groceries and Essentials Benefit and was topped up by 50% in the first year, followed by a 25% increase for the next four years, with a maximum annual payment of C$950 for a single recipient in 2026‑27.

The enhancement has been portrayed by the government as a targeted affordability measure, yet it has been criticized as another liberal social program that merely reshapes an existing rebate. Critics contend that the additional funds could discourage work, especially among secondary earners, and that the benefit is a “welfare coat‑over” rather than a genuine policy innovation, given that groceries are already tax‑free.

Click HERE to read the full analysis.