The federal government in Ottawa plans to raise rebates from the Goods and Services Tax
(GST) to help lower income Canadians manage inflation that is running at a 40-year high.
According to multiple media reports, Prime Minister Justin Trudeau will announce the GST
rebate increase at the Liberal’s cabinet retreat being held in Vancouver, British Columbia today
(September 8).
The federal government reportedly plans to double some GST payments for six months to help
low income Canadians struggling to pay their rent and afford other costs.
Also expected to be announced today is the launch of a national dentalcare program.
Trudeau’s Liberal government pledged a $500 top up to the Canada Housing Benefit and to
launch a national dentalcare program in its most recent budget.
Canadians with low incomes based on their annual tax filings receive a GST cheque every three
months as a type of rebate for some of the taxes they pay.
The current benefit is up to a maximum of $467 per year for a single person with an income of
$49,000 or less, and $612 for married or common-law couples, with an additional $161 provided
for each child under the age of 19.
The payments are indexed to inflation but the increase in 2022 is based on inflation in 2021,
which means payments for the GST rebate went up 2.4% this year.
Inflation in Canada is currently sitting at 7.6%, its highest level in 40 years. Higher consumer
prices for items such as gasoline and groceries are putting a pinch on Canadians’ finances.
The Liberal budget promised to introduce a national dentalcare plan starting with coverage for
children under the age of 12 in families with a household income below $90,000 a year.
The first phase of the national dentalcare plan is expected to cost $300 million. A $500 one-time
top up to the housing allowance this year was budgeted to cost taxpayers $475 million.
