Canadian Prime Minister Carney Unveils Plan to Reduce Food Costs Nationwide

Canadian Prime Minister Mark Carney has announced a multibillion-dollar package aimed at reducing the costs of food and essential items for low-income families. The package includes a five-year increase in the Goods and Services Tax (GST) credit, which will provide additional support to over 12 million Canadians. The GST credit is being renamed the Canada Groceries and Essentials Benefit.

The government has also committed to providing a one-time top-up equivalent to a 50 percent increase this year to eligible residents. According to Carney, the measures would cost the government approximately $3.1 billion in the first year, with costs ranging from $950 million to $1.8 billion in each of the following four years.

The package is part of a series of measures aimed at addressing concerns about food price inflation, which remains high due to global and domestic factors such as supply chain disruptions and climate change. The government has set aside $500 million from the Strategic Response Fund to help businesses address these costs without passing them on to Canadians.

Additionally, the government will create a $150 million Food Security Fund under the existing Regional Tariff Response Initiative for small and medium enterprises and organizations that support them. Carney stated that the new measures are aimed at building a stronger economy to make life more affordable for Canadians.

The announcement comes as Parliament resumes after its winter break, following opposition calls for price reductions on daily goods. The Canadian government has been working to diversify exports away from the US, which is Canada’s largest trading partner.

Source: Al Jazeera