The sharp rise in inflationary pressures such as housing, food and clothing prices in the aftermath of the COVID pandemic and the breakdown of supply chain across the board, have forced many Canadians to alter their spending habits and priorities including the most basic need being food. More and more Canadians are cutting back on healthier food options such as fruits and vegetables which are usually more expensive, in favour of high-carbohydrate and high-caloric food options. Inevitably if this trend continues, the country will face another health crisis, this time due to rising heart attack, stroke and diabetes numbers, adding to the already overburdened national healthcare system in Canada.
In response to this crisis, the Canadian Government proposed series of emergency measures in the 2023 Federal budget to alleviate the pressure on the Canadians until inflationary pressures are eased. Canada Grocery Rebate is one such measure intended to assist eligible Canadians with their rising grocery bills. Based on the governments estimates, 11 million Canadians will qualify for the rebate and it will cost the government $2.5 billion dollars. The rebate will be dispersed alongside Goods and Services Tax Credit (GSTC) benefit commencing in July 2023.
To be eligible, the individual/family must fulfill the following criteria:
There is no need to apply for the rebate and no applications to be filled out. If you and your spouse (in the case of married/common-law couples) have filed your 2022 taxes and you fulfill all criteria, you will receive the rebate with your GSTC benefit.
The amount received will be based on the individual/family income and the number of people in the household:
Canada Grocery rebate program is actually a rebranding of the GST tax credit boost from last year. Eligible low- and modest-income Canadians who already receive the GST tax credit will likely receive this payment automatically by filing their tax return.
This is obviously a start and not a solution to the problem considering that at the time of writing this article, a carton of milk and eggs cost $9 which equals to the weekly prorated amount of the rebate for a family of four ($467/52 weeks) !
In conclusion, the Canada Grocery Rebate program offers hope to millions of Canadians facing the strain of increasing food prices. By providing financial relief to eligible individuals and families, this initiative aims to mitigate the impact of inflationary pressures. Continued efforts by the government and society are vital in seeking long-term solutions that address the root causes of cost increases, ensuring a brighter and sustainable future for all.
For further information please contact Softron at 1-877-SOFTRON or visit www.softrontax.com
Posted on 25 April 2023