Canada Groceries and Essentials Benefit Act

An Act to amend the Income Tax Act

Sponsor

Status

This bill has received Royal Assent and is, or will soon become, law.

Summary

This is from the published bill.

This enactment amends the Income Tax Act in order to increase the maximum annual Goods and Services Tax/Harmonized Sales Tax credit (GSTC) amounts by 50% for the 2025-2026 benefit year. It also amends that Act to increase the maximum annual GSTC amounts by 25% as of the 2026-2027 benefit year for a period of five years.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-19s:

C-19 (2022) Law Budget Implementation Act, 2022, No. 1
C-19 (2020) An Act to amend the Canada Elections Act (COVID-19 response)
C-19 (2020) Law Appropriation Act No. 3, 2020-21
C-19 (2016) Law Appropriation Act No. 2, 2016-17

Debate Summary

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This is a computer-generated summary of the speeches below. Usually it’s accurate, but every now and then it’ll contain inaccuracies or total fabrications.

Bill C-19 amends the Income Tax Act to create the Canada Groceries and Essentials Benefit, providing low- and moderate-income Canadians with additional financial assistance through GST credit increases.

Liberal

  • Provides direct financial support for essentials: Bill C-19 creates the Canada groceries and essentials benefit, offering a one-time GST credit top-up and a 25% increase for five years to help low- and modest-income Canadians with rising costs.
  • Part of a broader affordability strategy: This benefit is the newest addition to a coherent suite of public policies, including existing benefits and programs, aimed at improving affordability and economic resilience for Canadians.
  • Addresses root causes and food security: The government supports a national food security strategy to increase domestic production, review competition rules, and reduce dependence on imports to stabilize food prices long-term.

Conservative

  • Supports immediate relief in bill C-19: Conservatives support the bill's expansion of the GST credit and one-time top-up as immediate relief for struggling families, but they emphasize it is not a genuine solution.
  • Bill C-19 fails to address root causes: They argue Bill C-19 is a temporary band-aid that does not address the underlying causes of high food prices, which are driven by Liberal policies like inflationary spending and various taxes.
  • Liberal policies cause food inflation: Conservatives contend that massive deficits, reckless government spending, and taxes like the industrial carbon tax and fuel standard tax are directly responsible for rising food costs.
  • Proposes permanent solutions to lower prices: They propose permanent solutions, including scrapping the food packaging tax, eliminating carbon and fuel standard taxes, reversing inflationary deficits, and boosting grocery competition to lower food prices.

Bloc

  • Supports aid, criticizes method: The Bloc supports the bill's objective of helping people with the high cost of living, noting its unanimous adoption, but questions the government's chosen method of one-off payments rather than permanent or monthly support.
  • Criticizes government's approach: The party views the measure as a short-term marketing ploy rather than a comprehensive solution, expressing distrust regarding the timing of the one-off cheque and the government's lack of long-term vision.
  • Highlights systemic issues: The Bloc emphasizes that the bill fails to address underlying systemic issues such as discrimination against seniors, the urgent need for employment insurance reform, and severe regional disparities in food access and cost.
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Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 5:15 p.m.

Conservative

Pat Kelly Conservative Calgary Crowfoot, AB

Mr. Speaker, last night at the finance committee, the member put some very good questions to the finance minister, and his responses were shameful. The minister did not answer, really, any opposition MPs' questions during his entire hour-long appearance. It was a shameful display from a minister unwilling to answer questions and explain his bill to Canadians.

I want the member to have a chance again to talk about the commitment the minister made that he would bring stability to the prices of groceries. He said that in 2023. Nothing has happened. He was asked pointed questions about competition, which he failed to answer.

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 5:15 p.m.

Bloc

Jean-Denis Garon Bloc Mirabel, QC

Mr. Speaker, we know that no one can be asked to do the impossible. We cannot ask the minister to move mountains, although the minister has an unfortunate tendency to create expectations that are impossible to fulfill.

It is true that the Conservatives questioned him about this in committee yesterday. I say this in a non-partisan way. It is a fact that tensions sometimes rise in committees. It is a fact that the questions are sometimes difficult, although at times the ministers ask for it.

When a minister avoids answering a question, wastes time or tries to prevent a member from the other side from asking questions, the result is frustration and a disservice to democracy. We sometimes get the impression that we are being denied our privilege as parliamentarians to ask questions, and situations like that can sometimes create unnecessary tension.

Regardless of my opinion that some of the Conservatives' questions yesterday were not very good, I think that the Minister of Finance did not always act in the service of democracy. I hold him in very high regard, and I think he can do better.

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 5:20 p.m.

Bloc

Gabriel Ste-Marie Bloc Joliette—Manawan, QC

Mr. Speaker, I thank my colleague from Mirabel for his eloquent speech. He addressed a number of topics related to the bill. I would like to hear his thoughts on a few things.

First, he pointed out that we are in a kind of oligopoly when it comes to food retailers. He noted that their numbers have declined over the past few decades. How is that putting pressure on people's grocery bills?

Second, the Bloc Québécois has often suggested increasing the GST credit. Can my colleague expand on that a little more? Finally, why was this measure not included in the budget?

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 5:20 p.m.

Bloc

Jean-Denis Garon Bloc Mirabel, QC

Mr. Speaker, very quickly, at the height of the inflation crisis in 2022, when inflation was at 6%, 7%, 8%, the Bloc Québécois had called for that. We also called for the frequency of the cheques to be increased.

At the time, the minister said that was inappropriate. All of a sudden, for the same reasons, it became appropriate. As the saying goes, it helps to sleep on it. The minister needed several hundred nights to sleep on it. We congratulate him for seeing common sense.

The Minister of Finance has reformed the Competition Act, but I think it should have been done a long time ago. Indeed, Canada has a serious competition problem in the retail sector, but also throughout the entire supply chain.

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 5:20 p.m.

Bloc

Marilène Gill Bloc Côte-Nord—Kawawachikamach—Nitassinan, QC

Mr. Speaker, I am pleased to rise to speak following my colleague from Mirabel. I plan to take a slightly different approach in my speech, in that my speech will focus more on my riding.

My colleague talked about how this measure could look like an election gimmick. He even asked the Minister of Finance if he had his election signs ready. I want to echo what my colleague was saying, because there are many ways the government could help the entire population, and the unilateral policies look a lot like a marketing ploy on the part of the government, which is boasting about the fact that it is going to help some 12 million Canadians and Quebeckers.

For years, everyone has been hammering home the point that people are struggling to make ends meet and put food on the table. Whether in Canada or Quebec, the situation is different depending on the community. Not all communities have the same level of wealth. Not all families have the same income or the same salary. Not all of them live in big cities. My colleague mentioned Costco and Walmart. In a riding like mine, sometimes people do not even have a grocery store within a three-hour drive. I will let my colleagues figure out how expensive that can be and what it means for folks in Côte-Nord—Kawawachikamach—Nitassinan.

That being said, a number of things in my riding could have had a considerable impact. When we talk about the cost of living, of course, the whole issue of groceries comes to mind. Now, we are being told that GST credit increase, as shown, will not be available to everyone. Furthermore, it will not be available quickly. People will have to wait three months. However, when people need money, when they want to eat, there is no time to waste. If people want to make a budget, they need to know how much money they are going to receive so they can stretch it out for the time it takes. I am really talking about stretching it out. I know that the election campaign was about 10 months ago, but I want to show how capable we are of acting fairly quickly to resolve certain situations, in ways other than some marketing stunt like this, even though we agree and we want to put more money in the pockets of Canadians and Quebeckers. That is certain.

The fact remains that there are other ways to help. My colleague mentioned the issue of seniors, for example. Some of them are in vulnerable situations. They are still being discriminated against by the government, yet the government refuses to correct that mistake, its discrimination. That would be a good start. Any change in the tax system that would allow seniors to work would be welcome. Many want to work, but feel that they cannot because any money they make—which could help them make ends meet and put food on the table—would get clawed back. That is one example for seniors. I am in a constituency where there are many seniors in vulnerable situations, living with the challenges that come with rural constituencies like mine. People have to travel 300, 200 or 100 kilometres to get services that will never match what is available in large centres.

When it comes to employment insurance, I say the same thing every time: We need a reform. Once again, the government has been bragging about how it will undertake a reform. It has been 10 years, now going on 11. The Liberals have said in every one of their election platforms that they were going to reform the employment insurance system. It is getting ridiculous. Again, EI is a little bit different everywhere, but in a riding like mine, where many people rely on seasonal industries and there are many seasonal workers, a reform is necessary. These people cannot make it through the whole year.

What the government is doing is preventing people from living in and occupying certain areas. At a time when we are talking about sovereignty and matters of national security, the government is displacing people from their land and driving them out of rural regions like mine. That is one way of doing things, and it kills industries. It can kill industries like the fishery, for example. It harms tourism, of course. The forestry industry is also affected. We should not be looking down on these industries because they are what help communities like mine thrive. Summer is really difficult these days, and I will talk more about the forestry industry later. There is really a need.

Obviously, we would like this to be developed, including secondary and tertiary processing, so that everything does not need to be sent out and people can work all year round. When you live in a region like the Lower North Shore, for example, where there are not necessarily roads connecting every village, where there are fishers with a few processing plants, it is hard to develop while in a constant state of survival. Food prices are not the same as in Montreal or even in certain parts of my riding. We are already facing huge challenges. People do not have the money to invest and grow. They need a big helping hand, more than just a GST rebate.

I said I would come back to forestry. The same goes for the forestry sector. In my riding, some communities are emptying out. It may be an exaggeration to say that entire towns are emptying out, but in places like Port-Cartier, where Arbec is located, and Baie-Comeau, where Domtar is located, hundreds of jobs have been lost, including indirect jobs related to these activities.

There are jobs where the government is telling workers that it will not help them at all. These people have no money left in their pockets. They may have to leave the region. Some have already quit and left. The economy is being destabilized right now, particularly in the forestry sector in my region. It is happening in other places also and some of my colleagues are seeing it as well. This is not helping people put food on the table. People are leaving the regions because of a lack of measures. The government is unable to stimulate the economy. It is not even able to maintain the precarious situations that existed before. Once again, a GST credit will not do any good.

Instead, why not implement a program to temporarily keep workers on the job until disputes are resolved, like the tariffs imposed by the U.S. or the CUSMA renegotiations that will be taking place later on? We remain very vulnerable, and this is yet another blow.

I mentioned EI, seniors and forestry. I would also add temporary foreign workers to the list. It may seem strange to bring this up now, but while it was not a question of cheques being taken away or reducing GST credits, the measures announced by the government in 2024 are having a real impact on our region. The people who came here to work helped companies develop. Some of these businesses, in certain sectors, are not even sure whether they will be able to stay open. They may have to close down or slow down production, simply because they can no longer manage.

The Bloc Québécois is asking for something very simple. Earlier, someone said that all the Bloc does is criticize. That is not true. We have made proposals. Why not put a moratorium on the temporary foreign worker cap? That would give them time to make other arrangements. Can we have discussions about what could be done to allow these people, who are already well established in our regions, to remain there? Our population is declining. I want people to be able to stay in my region, but the message we are sending them is that fishing and forestry are bad.

Nothing is being done for seniors. Like I said earlier, my riding has a lot of seniors. As for young people, the same thing goes for them. Income tax credits could be provided to help young people. Nothing was said about housing. All of these things are interconnected. There is more to it than groceries alone. What people spend on groceries is money not spent on housing. There are a lot of factors involved.

I could also mention Nutrition North Canada. People forget that in some places, especially in indigenous communities, in northern regions like mine or in remote areas, food prices are already extremely high, and nothing has been resolved. Nothing was resolved before we started talking about it more in connection with certain urban or non-indigenous communities. Things are still the same in my riding: In the north, in indigenous communities, everything is already extremely expensive. No help is on the way, and prices keep going up for them too. Some programs should be reviewed. Once again, the GST cannot fix these situations. It is a band-aid solution, a marketing ploy.

I also talked about indigenous issues. I am now the indigenous affairs critic. Perhaps some people forget about these communities too often, because food insecurity affects them, too. I would like everyone to really pay attention to this. I said that it affects those communities, and it has for a long time. This is nothing new. The housing we are talking about is really not a new issue for them either.

The Bloc Québécois supports a measure like this one, but we believe that the government can do better. In any case, we can see that it is increasing its deficit by $3 billion, an amount that will climb to $12 billion, simply to get some good press. Meanwhile, people have basic needs, such as housing and food, and they need help with that now. The Bloc Québécois is proposing solutions to achieve that.

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 5:30 p.m.

Trois-Rivières Québec

Liberal

Caroline Desrochers LiberalParliamentary Secretary to the Minister of Housing and Infrastructure

Madam Speaker, I have a lot of respect for my colleague. I know she works hard for her constituents.

I am a bit surprised to hear her say that we are not doing anything about affordability when her party keeps blocking measures that the government is putting in place to try and make life more affordable for people.

It is a shame that she calls the Canada groceries and essentials benefit a marketing ploy. I think she is forgetting about all the other measures it includes, like investments in the agri-food sector to increase production. I was pleased to hear her say that the Bloc Québécois was going to support this measure.

Now, the big question is this: Will the Bloc Québécois support the budget implementation act, which will really make a difference in people's lives?

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 5:30 p.m.

Bloc

Marilène Gill Bloc Côte-Nord—Kawawachikamach—Nitassinan, QC

Madam Speaker, as an elected official, I believe that we can make a difference every day in our work for our constituents, for Quebeckers, for Canadians. Of course, we will see what happens when it comes time to vote. I think that sometimes voting against certain measures also sends a signal to do better. It is one way of sending that message.

Obviously, we are willing to admit when a measure is good. At the same time, measures should be designed to reach as many people as possible. There are other targeted measures that could also be worth looking at. I do not think it is going to solve anything. That is basically the message I was sending. I understand that there is good faith, but I do not think this is going to solve the issue.

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 5:30 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Madam Speaker, obviously, the price of groceries is very high because of Liberal policies. It is higher than in other countries. In our opinion, the industrial carbon tax has contributed significantly to the increase in grocery prices. I would like to hear my colleague's opinion on this tax. Does the Bloc Québécois support our position that this tax should be eliminated?

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 5:30 p.m.

Bloc

Marilène Gill Bloc Côte-Nord—Kawawachikamach—Nitassinan, QC

Madam Speaker, I might actually turn that question back over to my colleague. I agree that prices are high. For me, the important thing is to find a solution. If building pipelines and increasing oil and gas consumption means that we pay a carbon tax, I imagine that the more appropriate thing would be to reduce that consumption and production so that we do not have to pay the tax.

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 5:30 p.m.

Bloc

Andréanne Larouche Bloc Shefford, QC

Madam Speaker, I thank my colleague for her speech and for her excellent work. She raised a number of important points, and I want to pick up on a few of them. Of course we agree that this GST credit was necessary. However, I think we need more meaningful measures, which are being discussed in our ridings.

I would like to give my colleague the opportunity to talk more about the issues the Liberals are dragging their feet on, such as real EI reform. I know she can attest to the fact that, at the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities, the Liberals do not really want this reform, which was proposed some time ago. It could really help some people and would be much more transformative than the GST holiday.

I would also like to come back to the issue of foreign workers. I know that a group of chambers of commerce was here earlier this week to talk about how essential these workers are to supporting businesses in the regions. I will give my colleague the opportunity to talk about these two measures, among others.

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 5:35 p.m.

Bloc

Marilène Gill Bloc Côte-Nord—Kawawachikamach—Nitassinan, QC

Madam Speaker, I thank my colleague for her question. I would also like to commend the organization Action‑Chômage Côte‑Nord, which is working tirelessly to make elected officials aware of the need to modernize the Employment Insurance Act. My colleague Louise Chabot, who is no longer a member of Parliament, introduced a bill in November 2024 to completely overhaul EI. We do not need to have the Bloc Québécois's name on it, though. If the government wants to take it on and amend the act, the bill is ready. The consultations have been done. We are ready.

However, I must say that this is an excellent example of how the measure fails to meet the needs of people back home who work in seasonal industries. The government is talking about issuing a cheque for a small amount every three months. However, people cannot make it through the year because they cannot work, there is no investment and they do not have access to EI. I must say, if I could choose, I would rather have support that would help me feed my family year-round.

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 5:35 p.m.

Liberal

Angelo Iacono Liberal Alfred-Pellan, QC

Madam Speaker, I will be sharing my time with the member for Madawaska—Restigouche.

I am pleased to speak today in support of Bill C-19, an important measure that aims to provide Canadians with a tangible way to cope with the cost of living, particularly the cost of groceries and essentials. This bill will amend the Income Tax Act to increase the maximum annual amounts of the GST credit by 50% for the 2025-26 benefit year. It also provides for an additional 25% increase in these amounts starting in the 2025-26 benefit year, for a period of five years.

The need for the new Canada groceries and essentials benefit is simple and clear. It will help more than 12 million Canadians afford everyday essentials, starting in the spring of 2026. We know that lower-income Canadians are struggling to absorb the rising cost of food and other basic expenses. Prices remain too high, and this reality is evident in all our communities.

The cost of living is a major concern for Canadians, and no less for our government. For us, affordability is a key priority of action, and we are constantly on the lookout for concrete solutions to address the challenges confronting households. The GST credit increase and this new benefit are other examples of our determination, in an uncertain world, to focus on things within our control by taking direct action to put more money back in the pockets of Canadians and make life more affordable.

This benefit builds on the existing GST credit to provide additional support amounting to $11.7 billion over six years. Our goal is to provide a one-time top-up as soon as possible in the spring of 2026. This one-time payment alone will deliver $3.1 billion in additional support to individuals and families already receiving the GST credit. Starting in July 2026, the 5-year 25% increase in the Canada grocery and essentials benefit will deliver $8.6 billion in additional support between 2026 and 2031. In all, these measures amount to $402 additional dollars for a single person with no children, $527 for a couple with no children and $805 for a couple with two children. These amounts are intended to directly offset the increased cost of groceries, which has outpaced the overall rate of inflation ever since the pandemic.

To illustrate the impact this measure will have in concrete terms, a single senior with $25,000 in net income would receive a one-time top-up of $267 plus a longer-term increase of $136 for the 2026-27 benefit year, for a total increase of $402. In total, this person would receive $950 for the 2026-27 benefit year. Similarly, a couple with two children with $40,000 in net income would receive a one-time top-up of $533 plus an increase of $272 for a total increase of $805. In total, this family would receive $1,890 for the 2026-27 benefit year.

After the one-time top-up payment is made in the spring of 2026, eligible families and individuals will receive the enriched regular payments as of July 2026. These payments will be made at the start of each quarter to permit timely access to the funds to help families with day-to-day expenses.

These amounts will be in addition to existing benefits like the Canada child benefit, the Canada disability benefit and the guaranteed income supplement.

It is important to note that recipients will not have to apply to receive these additional payments. However, they will need to have filed their 2024 tax return to receive the one-time payment and their 2025 tax return to receive the increased payments starting in July 2026.

In my riding of Alfred‑Pellan, this measure will have a very real impact. Alfred‑Pellan is home to many families, workers, newcomers and seniors who live alone. These are hard-working people who contribute to the vitality of our community and who are telling us very clearly that the cost of groceries is putting increasing pressure on their budgets. For these households, a few hundred extra dollars can have a real and immediate impact.

I also want to mention the other important measures announced by the Prime Minister in conjunction with the announcement for the Canada groceries and essentials benefit. These measures are part of a comprehensive approach to address food insecurity, support farmers and strengthen supply chains.

They include setting aside $500 million from the strategic response fund to help businesses address the costs of supply chain disruptions without passing those costs on to Canadians at the checkout line.

These measures also include creating a $150-million food security fund for small and medium enterprises and the organizations that support them, as well as providing $20 million to the local food infrastructure fund to ease immediate pressures with food banks.

In addition, we are taking measures to lower the cost of food production, such as accelerated depreciation for greenhouse buildings and the development of a national food security strategy to tackle the root causes of food insecurity by strengthening domestic food production and improving access to affordable, nutritious food.

The cost of groceries and essentials is still too high. Too many Canadians are still struggling to put food on the table. Affordability pressures, particularly those associated with food, demand an immediate response. That is why our government is taking action through concrete, responsible solutions to make life more affordable.

The new Canada groceries and essentials benefit will deliver real help to thousands upon thousands of Canadians. We estimate that 12.6 million individuals and families will receive this benefit, which provides material support where it is most needed. I therefore urge all members to support Bill C-19 in order to offer tangible relief to Canadians.

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 5:45 p.m.

Bloc

Claude DeBellefeuille Bloc Beauharnois—Salaberry—Soulanges—Huntingdon, QC

Madam Speaker, I listened carefully to my colleague's speech, and I think he knows full well that the Bloc Québécois will support Bill C-19. We heard from a lot of members of my party who have indicated that we will be supporting this bill.

There is one issue that keeps coming up that I am really concerned about. We get a lot of calls in our riding offices from people who say that they need more income to be able to meet their obligations and pay their monthly bills. I am wondering whether my colleague thinks that the measure would have been even more effective if the payments were made monthly instead of quarterly. Many people are borrowing money or living off their credit cards so that they can pay the bills.

If the GST credit was paid every month, it might better support people who live at home and who really struggle to make ends meet at the end of the month. Does my colleague not agree that it would be better to issue the payments monthly rather than quarterly?

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 5:45 p.m.

Liberal

Angelo Iacono Liberal Alfred-Pellan, QC

Madam Speaker, this bill is in addition to the Canadian dental care plan, $10-a-day child care, Canada's national school food program and the middle-class tax cuts. This is not an isolated measure. It is part of a coherent plan to improve affordability. That is the important thing. The important thing is not when the amount will be paid, but that an amount will be paid, whether quarterly or monthly.

The important thing is that the Government of Canada is taking action to meet a vital need.

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 5:45 p.m.

Brampton North—Caledon Ontario

Liberal

Ruby Sahota LiberalSecretary of State (Combatting Crime)

Madam Speaker, a lot of comments have been made about the essentials benefit as though it is the government's only measure. I want to hear some more insight into what the long-term measures in the bill consist of.