Manitobans welcome GST rebate boost, though many won’t benefit

Prime Minister Mark Carney’s announcement Monday that the GST rebate cheques will increase over the next five years is a move he says will tackle inflation.

It means the payments will increase by 25 per cent during that time, with a one-time 50-per cent increase in June. The federal government estimates it’ll affect around 12 million Canadians.

The announcement is being welcomed by seniors, and also welcomed by those who help the province’s most vulnerable access food.

Harvest Manitoba president Vince Barletta says while the GST boost doesn’t support all Canadians, the people that are eligible are those most in need.

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“The need for food banks has never been greater,” explains Barletta. “The demographics are pretty broadly-based. We see families with children, many people with jobs, over one in three people going to a food bank today in Manitoba have a job. Seniors who are on pensions, disabilities, a wide range of households.

“Given our understanding of how this benefit is going to be structured, really all those demographic groups are going to be captured by this.”

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But inflation is still hitting all Canadians, not just those eligible for the GST rebate.

2:31 Carney announces GST credit top up to tackle grocery costs

The Canadian Taxpayers Association is critical of the federal move, believing it doesn’t create any long-term solutions to food insecurity that many in the country face every day.

The organization argues tax cuts are the way forward.

“It’s good that 30 per cent of Canadians are getting relief, but 100 per cent of Canadians are paying too much tax,” says Canadian Taxpayers Association federal director Franco Terrazzano.

“Stop taking so much in the first place. You look at all the different taxes that Canadians are paying to various levels of government, and the average Canadian is spending 40 per cent of their budget on taxes.”

Currently, a family of four receives about $1,100 a year with the existing credit. With the new benefit, that same family will receive up to $1,890 this year and about $1,400 a year for the next four years.

During an unrelated news conference on Monday, Premier Wab Kinew also threw his support behind the GST boost.

“Anything we can do right now to help to average person to put food on the table is a good step,” Kinew said.