Tories Get Backing for Expedited Passage of Liberals’ GST Credit Boost

Members of Parliament backed a Conservative motion on Feb. 2 to quickly approve the Liberal government’s plan to increase benefits under the GST credit.

MPs unanimously approved the motion introduced by Tory Deputy Leader Melissa Lantsman that proposed to speed up the House of Commons’ deliberations over Bill C-19, also known as the Canada Groceries and Essentials Benefit Act.

The motion says the House of Commons has to complete the bill’s review on Feb. 4, after which the bill will be sent to the Senate.

“If you work here, you know that that’s lightning speed,” Lantsman told reporters in Ottawa about the proposed timeline. The Tory MP said the measure will provide “real relief expeditiously for families” while adding “it’s not going to solve the problem.”

Finance Minister François-Philippe Champagne said the Tories are “full of enthusiasm this morning” as he opened second reading of Bill C-19 on Feb. 2, asking MPs to pass the bill in the “swiftest manner that one can imagine.”

“The Canada groceries and essential benefit will deliver real help to Canadians who are struggling with the cost of groceries and everyday essentials,” the minister said.

Bill C-19 was introduced by Champagne on Jan. 28. It seeks to amend the Income Tax Act to increase the maximum annual GST credit amounts by 50 percent for the 2025-2026 year. For the five following years, the amounts would be increased by 25 percent.

Prime Minister Mark Carney announced the measure on Jan. 26, among other initiatives meant to help lower food prices. Carney said the GST credit has helped to make the tax system “fairer” by returning a portion of the federal sales tax to individuals with lower income. The payment is sent out four times a year.

“The rise in food prices means that a lot of these Canadians need more support right now,” he said.

On the day the measure was announced, Tory Leader Pierre Poilievre said his party would not oppose it, while calling the credit a “Trudeau-era rebate,” in reference to a similar measure introduced by the previous Liberal government. Poilievre added that improving affordability should instead be sought by reducing “inflationary deficits” and removing the “taxes on food.”

Lantsman made similar comments, saying Ottawa needs to remove taxes like the industrial carbon pricing and the Clean Fuel Regulations (CFR) in order to lower food prices.

An analysis by the Parliamentary Budget Officer (PBO) in 2023 called the CFR “broadly regressive,” meaning it will impact lower-income households the most. Ottawa estimates the CFR, meant to incentivize companies to produce cleaner fuels to reduce emissions, will increase gasoline prices by 17 cents by 2030.

Lantsman said her party will introduce a motion in the House on Feb. 3 on the topic of grocery prices. A Conservative motion last week calling for the Liberal government to introduce its Canada Sovereignty Act to repeal legislation Tories say are impeding economic growth was rejected by all other parties.

“We want to see the actual problem be solved, and not just a $10 coupon at the entrance of a grocery store on $300 of groceries every time you go there,” Lantsman said. “We now have the highest [food] inflation of anywhere in the G7 and that’s not something to be proud of.”

Canada’s latest food inflation reading was 6.2 percent in December, the highest in the G7 and double that of the United States. Champagne said last week affordability concerns a “global phenomenon” impacting all G7 countries.

Impact

The PBO released its analysis of the GST credit measure on Feb. 2 and said it “does not expect a significant behavioural impact.”

The budget officer says the measure will cost $12.4 billion over the next six years, including $3.129 billion for the current fiscal year.

The new measure was introduced not long after the Liberals passed their Budget 2025 in November. Budget 2025 was presented as a plan to make Canada’s economy the “strongest in the G7,” with increased deficits in a bid to boost economic growth.

Champagne said on Feb. 2 his budget focuses on “building a strong and resilient Canadian economy, while at the same time remaining focused on the more immediate needs of Canadian families and Canadian workers.”