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The Markets
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The Markets
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Retail & consumer

Canadian federal budget preview: grocery rebate, green economy tax credits included, sources say

The 2023 federal budget includes a grocery rebate that will help lower-income Canadians struggling with rising food prices, according to media reports.

A senior government official told CBC News the measure was worth north of $2 billion and would benefit nearly 11 million households.

A couple with two children would get a one-time payment of up to $467, a senior would get a one-time payment of $225, and a single person would get a one-time payment of $234 in the form of a GST credit, according to the report.

When asked about the rumored grocery rebate on Monday, Prime Minister Justin Trudeau told reporters: "A big part of the budget will be focused on measures to Canadians in targeted ways.”

"Groceries will certainly be part of it, but there are other things as well that we're going to continue to do to be there for Canadians."

Another government official told BNN Bloomberg that the budget will include an increase to the withdrawal limit for a registered education savings plan (RESP) from $5,000 to $8,000.

According to multiple reports, the government also plans to crack down on so-called junk fees, the hidden or unexpected charges added to the price of a product or service.

Funds have also been set aside for recent healthcare deals made with the provinces and territories and "significant" investments in the green economy in the vein of the United State's Inflation Reduction Act of 2022.

This includes a tax credit for clean tech manufacturing worth up to 30% of capital investment costs in manufacturing, CBC News' source said.

The senior government official told the publication that the critical mineral sector is one area where the government wants to accelerate production, and the tax credit would provide an incentive to mine and process critical minerals amid rising demand.

-- Updated with Trudeau's comments --

Contact the author at emily.jarvie@proactiveinvestors.com

Follow her on Twitter @emilyjjarvie

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