Liberals’ GST Credit Boost Becomes Law After Expedited Review

An attendant stands at the checkout at a No Frills Grocery store in Toronto, on May 30, 2024. The Canadian Press/Chris Young

Legislation to implement the Liberal government’s 25 percent boost to the GST credit has received royal assent and become law, following an expedited passage through the House of Commons.

Bill C-19, also known as the Canada Groceries and Essentials Benefit Act, amends the Income Tax Act to increase the maximum annual GST credit amounts by 50 percent for the 2025-2026 fiscal year, and by 25 percent for the following five years. Approximately 12 million Canadians are eligible for the credit.

The government estimates that a single senior with $25,000 in net income would receive $950 in the 2026–2027 fiscal year with the credit increase. Meanwhile, a couple with two children and $40,000 in income would receive $1,890 for the 2026-2027 fiscal year.

The Conservative Party backed the passage of the legislation, introducing a motion on Feb. 2 in the House of Commons to speed up Bill C-19 deliberations. The motion, introduced by Tory Deputy Leader Melissa Lantsman, was unanimously approved by MPs.

Lantsman told reporters the same day that the bill would be passed with “lightning speed,” and that while it would provide “real relief” for families struggling with food costs, this would not be enough to solve the underlying problem.

Conservative Leader Pierre Poilievre signalled his party would support the measure, which was introduced by Prime Minister Mark Carney on Jan. 26, but he also likened the measure to a “Trudeau-era rebate.” He said getting rid of “inflationary deficits” and “taxes on food” would be more effective because such steps would lower food prices.

The government under former Prime Minister Justin Trudeau introduced a policy in 2024 that doubled the GST credit for six months in a bid to help with affordability.

Finance Committee Appearance

Champagne appeared before the House finance committee on Feb. 3 to discuss Bill C-19, and told MPs that food inflation remained “stubbornly high” due to “structural issues,” citing Canada’s need to import most of its produce during the winter, differences between the value of the Canadian and U.S. dollars, tariffs, supply chain disruptions, and climate change.

When Lantsman noted that food prices had risen by 7.8 percent since 2023, Champagne said food prices are “challenging everywhere,” adding that Bill C-19 includes measures to encourage more food production within Canada. The legislation would allow producers to fully write off greenhouses acquired after Nov. 4, 2025, that are available for use before 2030.

Conservative MP Jasraj Singh Hallan cited the Parliamentary Budget Officer’s Feb. 2 report estimating that the increased GST credit would cost $12.4 billion over six years, including more than $3.1 billion for the current fiscal year. The MP said he was concerned about how the Liberal government would pay for the program.

Champagne said there are other ways to grow the economy. “That’s exactly what we’re doing,“ he said. ”That’s why you saw in Budget 2025 that we have generational investments to grow our economy.”

The 2026 edition of Canada’s Food Price Report, released in December 2025, projected the average family of four in Canada would pay an additional $994.63 for food in 2026 compared to the previous year. It predicted that overall grocery prices would rise by 4 to 6 percent.