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 / 5:45 p.m.

Liberal

Angelo Iacono Liberal Alfred-Pellan, QC

Madam Speaker, this support, this help, will make a big difference for people in need. It is not just for food banks. It can also help pay rent or other expenses. It really meets a need for all vulnerable families. It is clear that this is going to help 12 million Canadians.

The important thing is that there is support that will help 12 million Canadians. The important thing is that Canadians will get to decide how they will spend the money to meet their needs.

Canada Groceries and Essentials Benefit ActGovernment Orders

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

Liberal

Guillaume Deschênes-Thériault Liberal Madawaska—Restigouche, NB

Madam Speaker, I would like to ask my colleague how today's announcement regarding Bill C-19 fits into a broader strategy to address the cost of living in Canada. In other words, how will it help Canadians deal with the rising cost of living and how will it strengthen food security? This is not a stand-alone measure. It is part of a plethora of other measures that really help Canadians.

I would like to hear my colleague's thoughts on that.

Canada Groceries and Essentials Benefit ActGovernment Orders

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

Liberal

Angelo Iacono Liberal Alfred-Pellan, QC

Madam Speaker, Bill C‑19 is not ideological. It is pragmatic. It puts money in the pockets of Canadians who need it quickly and efficiently.

This is not about scoring points. It is about who is prepared to deliver results for Canadian families. We are taking action, not leaving Canadians to suffer economic consequences.

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 5:50 p.m.

NDP

Gord Johns NDP Courtenay—Alberni, BC

Madam Speaker, when we are talking about food costs, we have to look at the corporate profits. I know big grocery stores are making big profits.

Where I live, in coastal British Columbia, when it comes to fish and independent fish harvesters, a lot of the quota licences are held by a handful of fishers. We call them slipper skippers or armchair fishers because they hold the licences and then lease them out to fishers, who do not actually make very much money. As well, the consumer ends up paying more money.

Does my colleague agree that this model needs to be changed, that anybody out fishing should be making the profit and that this would lower prices for consumers at the end of the day?

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 5:50 p.m.

Liberal

Angelo Iacono Liberal Alfred-Pellan, QC

Madam Speaker, hundreds of thousands of Quebeckers, including many seniors, will benefit directly from this measure. In Laval, in Alfred-Pellan, single seniors will receive up to $950 for the 2026-27 fiscal year.

A refusal to approve this assistance on ideological grounds would be difficult to explain to Quebeckers and Canadians who are struggling to pay for groceries.

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 5:50 p.m.

Liberal

Guillaume Deschênes-Thériault Liberal Madawaska—Restigouche, NB

Madam Speaker, today we are discussing an important bill that will roll out the Canada groceries and essentials benefit. This benefit is based on the existing GST credit. It will put more money in the pockets of Canadians who need it most. People with low or modest incomes will see an increase in the amount of money they receive. We are doing this because we recognize that there is a real need to help people.

When I travel around my constituency, people talk to me about the cost of living. It is a top issue for Canadians. As a government, we have a duty to listen and take action to meet people's needs. That is why the objective of this measure is to provide immediate assistance to those who need it most. It is part of another package of measures we have put in place, in the 2025 budget and over the past few years, to help Canadians cope with the rising cost of living.

If we really want to have a long-term impact, we need to address the root causes that are making groceries more expensive today. I am very pleased that our government has announced it intends to develop a food security strategy. The goal is to increase domestic food production and ensure that more of the food on our plates comes from Canada. I would love to see more chicken from Upper Madawaska, more potatoes from Grand Falls and more vegetables from growers like Légumier du Madawaska or Jardins de Georges in Saint‑Quentin on my plate. To do that, we need to create incentives to help our food businesses.

Why is it important to reduce our dependence on international imports? When we look at the causes of food inflation, we see that there are a number of factors that go beyond Canada's borders. I am thinking in particular of disruptions to supply chains around the world that may be caused by the post-pandemic context, but also by global conflicts happening around the world. I am also thinking of the tariff disputes that are affecting supply chains and the cost of food. Also, when we import a lot of our food, like most of our produce, which comes from abroad in the winter because of our climate, fluctuations in exchange rates will have a significant impact on the price of groceries. In short, if we really want to address the root causes of rising grocery prices, we need to improve food security and help Canadian businesses increase their production.

Given the tariff war, we have earmarked $500 million in the strategic response fund to help food sector businesses cope with tariff shocks. The aim is to help these businesses avoid passing on the financial impact of tariffs to consumers at grocery store checkouts. Similarly, we have earmarked $150 million in the regional tariff response initiative to support the food sector.

As we develop our strategy, we will also review the rules surrounding unit product labelling in grocery stores. Our goal is to help Canadians make informed grocery choices and give them a good idea of the price they will pay at the checkout. We will also review competition rules. In particular, we will ensure that the Competition Bureau has more oversight over the activities of food sector businesses. Why are we doing this? It is because fair competition ultimately benefits consumers by creating downward pressure on prices.

We will also introduce tax incentives to encourage the construction of more greenhouses in Canada. As I mentioned earlier, we face a challenge here in Canada in that, with the winter, we cannot produce as many fruits and vegetables as we would like throughout the year. We want more greenhouses so that we can produce food all 12 months of the year here at home. More specifically, we will be rolling out immediate expensing for greenhouses acquired on or after November 4, 2025, and that become available for use before 2030.

This is a whole suite of measures. More measures are coming that will ensure that Canada has a proper food security strategy to address rising food costs. This is a top priority for Canadians, and it is also a priority for our government to respond to the challenges caused by soaring prices.

If we want to strengthen Canadians' purchasing power in the long term, it is important to strengthen the Canadian economy. Last spring, we were elected with a mandate to make the Canadian economy stronger, more resilient and unified.

From day one, we got down to work. We eliminated the federal barriers to interprovincial trade. Our Prime Minister travelled around the world to forge new trade partnerships with different countries and to attract foreign investment to Canada. We also included tax incentives in budget 2025 to encourage investment. For example, entrepreneurs who want to buy equipment to boost their productivity will be able to deduct more pieces of equipment on their tax returns. We also included various measures in budget 2025 to encourage innovation, such as the enhancement of the scientific research and experimental development tax incentive program. These are practical measures that increase our Canadian businesses' productivity and thus strengthen our economy.

We also announced our buy Canadian policy because we believe that the federal government must be its own best customer. We have a lot of purchasing power, and we want to use that power to benefit Canadian businesses. In practical terms, that means government investments in infrastructure. We announced a whole series of historic investments in infrastructure and housing in budget 2025, and we want to prioritize Canadian materials, such as our softwood lumber and steel. Softwood lumber is an important industry in my riding of Madawaska—Restigouche because it is at the heart of our local economy. As a government, we feel it is important to be there for the industry when it is struggling. That is why we implemented a strategic response fund to help softwood lumber companies deal with the current tariff crisis.

Why am I talking today about the need to strengthen the Canadian economy and build a stronger economy? The idea is that a stronger economy benefits everyone. With a stronger economy, all Canadians will have a shot at better career and employment opportunities, higher wages and therefore increased purchasing power. All the work we are doing to transform and strengthen the Canadian economy is for the benefit of all Canadians so that, in the medium and long term, everyone can increase their purchasing power.

Today, we are discussing the Canada groceries and essentials benefit, which is a measure based on income. I would like to mention an initiative that we put in place in budget 2025 that will help ensure that the money we are offering truly makes it into the pockets of Canadians who need it most.

We have a problem right now, which is that millions of low-income Canadians do not file an income tax return, often because of a lack of resources or support or out of the mistaken belief that they do not need to file if they have a low income. As a result, millions of Canadians are missing out on essential federal benefits that they are entitled to. I am thinking here of the new Canada groceries and essentials benefit in particular, but also of the Canada child benefit, the Canada workers' benefit and all of the other income-related federal benefits.

The solution we came up with was to introduce automatic federal benefits starting in the 2026 tax year. This program will be phased in and fully implemented by 2028. This will help an estimated 5.5 million Canadians. We are talking about people who often have very low incomes; these benefits will significantly improve their lives. The people affected will first have the opportunity to review a pre-filled income tax return and confirm whether the information is correct. Then, the Canada Revenue Agency will be able to automatically submit a tax return on their behalf. Of course, if they want to file their own tax return, they can do so. This measure is really targeted to help people who are not currently filing a tax return and therefore losing access to essential benefits that can help meet their needs.

Lastly, I want to mention that the benefit that will be implemented by Bill C‑19 is part of a whole suite of measures to help Canadians deal with the cost of living. I am thinking in particular of the middle-class tax cut that we announced at the beginning of our mandate last spring. I am also thinking of the national school food program, which we are making permanent in budget 2025, the Canada child benefit, the affordable child care program, the Canadian dental care plan and all the other social measures we have put in place over the past few years.

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 6 p.m.

Bloc

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

Madam Speaker, as always, I greatly appreciated the speech by my colleague across the floor. It is a pleasure to hear him speak. He is a new MP, and I honestly think that he has learned a lot, very quickly.

I know that my colleague is a thorough and hard-working member of Parliament who knows his files. In his speech, he said that budget measures had been announced to help people. I wonder why, three months after the budget was tabled, a budget measure is being introduced in a separate bill. My colleague is well aware that the Standing Committee on Finance is currently studying Bill C-15, which implements the budget that was presented.

Why did his government not include this measure in its budget three months ago?

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 6 p.m.

Liberal

Guillaume Deschênes-Thériault Liberal Madawaska—Restigouche, NB

Madam Speaker, the cost of living and affordability are top concerns for Canadians. We want to listen to Canadians and meet their needs on an ongoing basis.

In budget 2025, we implemented a number of measures that directly address the issue of the cost of living. I am thinking of the middle-class tax cut, the school food program becoming permanent, and the investments we will be making in infrastructure, including affordable housing. Budget 2025 already includes a whole suite of measures to directly address the cost of living. I hope we will see it back in the House very soon so we can pass it at third reading.

With respect to the measure we are currently studying, we brought it forward because we realized that people needed help right now. Budget 2025 includes several measures to transform and strengthen the Canadian economy and enhance purchasing power in the long term. In the meantime, we wanted to make sure that Canadians got help right now. This is yet another measure that will put money back in the pockets of Canadians right away.

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 6 p.m.

Conservative

Chak Au Conservative Richmond Centre—Marpole, BC

Madam Speaker, once again, we have seen this before. The Liberal government is trying to address a structural problem by providing short-term relief measures. As we have seen in the past, when these kinds of measures are temporary and short-lived, they do not help the cost of living. While these programs are being offered, the cost of living is still rising.

I want to challenge the government to provide one example of these kinds of measures creating long-term, sustainable and measurable reductions in grocery prices. If this has not worked before, why would the government believe that this time it would work?

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 6 p.m.

Liberal

Guillaume Deschênes-Thériault Liberal Madawaska—Restigouche, NB

Madam Speaker, I would like to remind the member that his party supports Bill C-19, from what I understand, and I think it is a welcome measure that will receive unanimous support in the House.

My colleague talks about structural problems. In fact, I would say that a bigger structural problem is our Conservative colleagues' unwillingness to help Canadians in need. Every time we propose measures to help Canadians cope with the cost of living, our official opposition colleagues vote them down. We want to make the school food program permanent, but they oppose it. That in itself is not surprising, because their leader has been opposing it for years and has been saying that the school food program will serve to feed the bureaucracy rather than the children. I would invite my opposition colleagues to visit schools and see how this program is really making a difference. More than 400,000 children now have access to healthy meals in the morning.

The Conservatives opposed the Canadian dental care plan and the affordable child care program. Speaking of the affordable child care program, one of the first speeches given by the Leader of the Opposition in 2005 was to oppose public funding for child care. When it comes to structural problems, I would say that the bigger problem is our Conservative colleagues' unwillingness to help Canadians in need.

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 6:05 p.m.

Trois-Rivières Québec

Liberal

Caroline Desrochers LiberalParliamentary Secretary to the Minister of Housing and Infrastructure

Madam Speaker, day after day, the opposition parties tell us that we are not doing enough on affordability. It seems a bit ironic to me that both Conservative Party and Bloc Québécois members are constantly voting against the measures we are putting in place to make life more affordable for Canadians.

The tax cut for 22 million Canadians, the national school food program for children, our investments in affordable housing, the automatic payments that my colleague talked about, and removal of the GST for first-time homebuyers all come to mind. All of these measures are part of the budget implementation act that we are trying to put forward and that members of the opposition are trying to block in a parliamentary committee by playing procedural games.

I would like my colleague to tell me what impact these shenanigans are having on the people in his riding due to the fact that we are unable to pass the budget and they are unable to access these affordability measures.

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 6:05 p.m.

Liberal

Guillaume Deschênes-Thériault Liberal Madawaska—Restigouche, NB

Madam Speaker, I think that everyone who cares deeply about Canadians should work to pass this budget, which will tackle infrastructure needs, help with the cost of living and address the housing shortage.

We are at a critical moment in Canadian history. We want to transform the Canadian economy to make it stronger and more resilient in order to increase our purchasing power. We are facing a tariff dispute we did not ask for, but we answered it with budget 2025.

This budget includes essential measures for the well-being of Canadians. I believe that, as parliamentarians, instead of filibustering, we should focus on passing the budget implementation bill as quickly as possible for the benefit of Canadians.

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 6:05 p.m.

The Assistant Deputy Speaker (Alexandra Mendès) Alexandra Mendes

Pursuant to order made on Monday, February 2, Bill C-19, an act to amend the Income Tax Act, is deemed read a third time and passed on division.

(Bill read the third time and passed)

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 6:05 p.m.

Liberal

Ruby Sahota Liberal Brampton North—Caledon, ON

Madam Speaker, I believe that if you seek it, you will find unanimous consent to see the clock at 6:08 p.m. so we can start Private Members' Business.

Canada Groceries and Essentials Benefit ActGovernment Orders

February 4th, 2026 / 6:05 p.m.