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Amendments in the ”[[Income Tax Act (Canada)|Income Tax Act]]” were passed later in 1986 and created section 122.4 which provided the refundable credit.<ref>{{Cite canlaw|short title = An Act to amend the Income Tax Act and a related Act|abbr = S.C.|year = 1986|chapter = 55|section=41|link = https://archive.org/details/actsofparl1986v02cana/page/1631/mode/1up}}</ref> The [[1987 Canadian federal budget|1987 federal budget]] tightened the rules for the calculation of the family income (for instance in the case of unmarried parents).<ref>{{cite book | title=Budget Papers: Securing Economic Renewal | date=18 February 1987 | location=Ottawa | url=https://www.budget.canada.ca/archives/1987-pap-eng.pdf | access-date=6 February 2026 | language=en | page=53 }}</ref><ref>{{Cite canlaw|short title = An Act to amend the Income Tax Act, a related Act, the Canada Pension Plan and the Unemployment Insurance Act, 1971|abbr = S.C.|year = 1987|chapter = 46|section=44|link = https://archive.org/details/actsofparl1987v01cana/page/1341/mode/1up}}</ref> |
Amendments in the ”[[Income Tax Act (Canada)|Income Tax Act]]” were passed later in 1986 and created section 122.4 which provided the refundable credit.<ref>{{Cite canlaw|short title = An Act to amend the Income Tax Act and a related Act|abbr = S.C.|year = 1986|chapter = 55|section=41|link = https://archive.org/details/actsofparl1986v02cana/page/1631/mode/1up}}</ref> The [[1987 Canadian federal budget|1987 federal budget]] tightened the rules for the calculation of the family income (for instance in the case of unmarried parents).<ref>{{cite book | title=Budget Papers: Securing Economic Renewal | date=18 February 1987 | location=Ottawa | url=https://www.budget.canada.ca/archives/1987-pap-eng.pdf | access-date=6 February 2026 | language=en | page=53 }}</ref><ref>{{Cite canlaw|short title = An Act to amend the Income Tax Act, a related Act, the Canada Pension Plan and the Unemployment Insurance Act, 1971|abbr = S.C.|year = 1987|chapter = 46|section=44|link = https://archive.org/details/actsofparl1987v01cana/page/1341/mode/1up}}</ref> |
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Amounts for the yearly credit have been increased several times:<ref>{{cite book |author=Department of Finance|title=Goods and Services Tax: Technical Paper |date=August 1989 |publisher=Government of Canada |location=Ottawa |page=14 |url=https://publications.gc.ca/collections/collection_2016/fin/F2-85-1-1989-eng.pdf |access-date=7 February 2026| ref = {{harvid|GST Technical Paper (August 1989)}}}}</ref> |
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{| class=”wikitable” style=”text-align:center” |
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! Yearly Credit |
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! 1986 |
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! 1987 |
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! 1988 |
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! 1989 |
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! 1990 |
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! Adult |
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| colspan=2| $50 |
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| $70 |
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| $100 |
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| $140 |
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! Child |
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| colspan=2| $25 |
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| $35 |
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| $50 |
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| $70 |
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The income threshold where the credit is reduced was also raised from $15,000 in 1986 to $16,000 in 1988 and $18,000 in 1990.{{sfn|GST Technical Paper (August 1989)}} |
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===Goods and Services Tax Credit (since 1990)=== |
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As part of the comprehensive tax reform leading up to the introduction of the Goods and Services Tax on January 1, 1991 the federal government announced the replacement of the previous federal sales tax credit with a new and enriched ”’Goods and Services Tax Credit”’ (GSTC). Credit amount was significantly raised to reach $275 per adult and $100 per child. The income threshold for credit reduction was also significantly raised from $18,000 to $24,800. The government projected in 1989 that 9.3 million families would be eligible for the GSTC in 1991{{sfn|GST Technical Paper (August 1989)}} |
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==Notes and references== |
==Notes and references== |
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Latest revision as of 01:48, 7 February 2026
The Canada Groceries and Essentials Benefit (CGEB; French: Allocation canadienne pour l’épicerie et les besoins essentiels) is a proposed fiscal measure to be administered by the Canada Revenue Agency on behalf of the Government of Canada.
Announced by Prime Minister Mark Carney on January 26, 2026,[1][2] the benefit would replace the Goods and Services Tax Credit (GSTC)[a] and provide enhanced refunds to lower-income households starting in 2026.
The GSTC is a tax-free quarterly payment provided to individuals and families to refund a portion of the Goods and Services Tax (GST) they pay on their purchases throughout the year. Administered by the Canada Revenue Agency, eligibility to the program is automatically determined upon filling of income taxes.[3]
On January 28, 2026, the minister of finance and national revenue François-Philippe Champagne introduced bill C-19[b]in the House of Commons to implement the CGEB through amendments to the Income Tax Act.[4]
Federal Sales Tax Credit (1986-1990)
[edit]
The refundable federal sales tax credit was introduced by the 1986 federal budget (along with an increase in the rates of the federal sales tax). At the time the yearly credit was $50 per adult and $25 per child.[c] Cost of the new benefit was estimated at $330 millions for fiscal year 1986-87.[6]
Amendments in the Income Tax Act were passed later in 1986 and created section 122.4 which provided the refundable credit.[7] The 1987 federal budget tightened the rules for the calculation of the family income (for instance in the case of unmarried parents).[8][9]
Amounts for the yearly credit have been increased several times:[10]
| Yearly Credit | 1986 | 1987 | 1988 | 1989 | 1990 |
|---|---|---|---|---|---|
| Adult | $50 | $70 | $100 | $140 | |
| Child | $25 | $35 | $50 | $70 | |
The income threshold where the credit is reduced was also raised from $15,000 in 1986 to $16,000 in 1988 and $18,000 in 1990.
Goods and Services Tax Credit (since 1990)
[edit]
As part of the comprehensive tax reform leading up to the introduction of the Goods and Services Tax on January 1, 1991 the federal government announced the replacement of the previous federal sales tax credit with a new and enriched Goods and Services Tax Credit (GSTC). Credit amount was significantly raised to reach $275 per adult and $100 per child. The income threshold for credit reduction was also significantly raised from $18,000 to $24,800. The government projected in 1989 that 9.3 million families would be eligible for the GSTC in 1991
Notes and references
[edit]
- ^ Also known as the GST/HST credit as it also refunds part of the Harmonized Sales Tax (HST) paid in provinces where it is enacted.
- ^ An Act to amend the Income Tax Act whose short title is Canada Groceries and Essentials Benefit Act.
- ^ The tax credit amount is reduced by 15% of the family income in excess of $15,000.
- ^ Zimonjic, Peter (January 26, 2026). “Carney announces food affordability measures, including boost to GST rebate”. CBC News. Canadian Broadcasting Corporation. Retrieved January 29, 2026.
- ^ “Prime Minister Carney announces new measures to make groceries and other essentials more affordable for Canadians”. Prime Minister of Canada. January 26, 2026.
- ^ Canada Revenue Agency (November 28, 2025). “GST/HST credit”. www.canada.ca. Ottawa: Government of Canada.
- ^ “Bill C-19: An Act to amend the Income Tax Act”. LegisInfo. House of Commons. Retrieved January 29, 2026.
- ^ Budget Papers (PDF). Ottawa. February 26, 1986. Retrieved February 6, 2026.
{{cite book}}: CS1 maint: location missing publisher (link) - ^ An Act to amend the Income Tax Act and a related Act, S.C. 1986, c. 55, s. 41
- ^ Budget Papers: Securing Economic Renewal (PDF). Ottawa. February 18, 1987. p. 53. Retrieved February 6, 2026.
{{cite book}}: CS1 maint: location missing publisher (link) - ^ An Act to amend the Income Tax Act, a related Act, the Canada Pension Plan and the Unemployment Insurance Act, 1971, S.C. 1987, c. 46, s. 44
- ^ Department of Finance (August 1989). Goods and Services Tax: Technical Paper (PDF). Ottawa: Government of Canada. p. 14. Retrieved February 7, 2026.
