According to official sources, the federal government will propose a new grocery rebate in the 2023 budget on Tuesday to make basic necessities more accessible.
According to two government sources who spoke on the condition of anonymity because they were not permitted to speak publicly about the budget before its release, the government’s “grocery rebate” will be given through the GST tax credit system and will be dependent on household income.
Grocery Rebate Eligibility
The new grocery rebate could help about 11 million households overcome financial barriers caused by situations like this, with a budget of up to $2 billion “facilitated through the GST credit.” According to a CBC News source, not all the money in the rebate is expected to be spent on groceries, and the amount you receive will not be determined by your shopping purchases.
Low-income families, the elderly, and individuals will be eligible after the budget is passed. According to sources, the new legislation will provide up to $467 to families with two children. A single adult would receive $234, while a single senior would receive $225.
According to Statistics most recent inflation data, food costs increased by 11.4 percent year on year in January, nearly double the rate of inflation of 5.9 percent and up from 11% the previous month.
Average Household Requires At Least $1,000
On Monday, a team of researchers from Dalhousie University’s Agri-Food Analytics lab calculated that, due to inflation, the average household of four will pay at least $1,000 more for food this year.
The Greater Vancouver Food Bank was also skeptical about the efficacy of a rebate. Over the last year, they have welcomed, at times, upwards of 1,000 new clients per month. In total, the GVFB says they feed about 16,000 people each year – and the demand is growing.
Chief Operating Officer Cynthia Boulter says the number of children, seniors and families in need is breaking records. The grocery rebate will be rolled out through the GST system, once a bill implementing it passes in the House of Commons, according to sources.
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