Mr. Speaker, our government has stepped up its efforts to make life more affordable for Canadians because we need to take action and get moving. The current global environment is evolving rapidly, and there is a lot of uncertainty around the global economy. Canada is no exception, and Canadians and Canadian businesses are seeing this every day. Our government is focusing on what it can control: building a stronger economy and making life more affordable for Canadians. We have introduced a number of measures to lower the cost of living and enable Canadians to keep more of their hard-earned money.
Let us talk about the excise tax announcement. It is great that the Leader of the Opposition made sure to mention gas prices in the motion. The military conflicts going on around the world are affecting refinery capacity and oil and gas transport networks. The government is mindful of the fact that while these conflicts may be happening in distant lands, consumers have been forced to pay higher prices at the pump here in Canada. We know that this is creating uncertainty, causing stress and putting pressure on families trying to make ends meet.
As the Prime Minister indicated earlier today, our government will provide significant relief for the cost of fuel by suspending the federal excise tax on gasoline and diesel starting on Monday, April 20, and until Labour Day on September 7. Currently, the federal excise tax is 10¢ per litre for gasoline and four cents per litre for diesel. The suspension of this tax is expected to save Canadians about $5.75 on a full 50-litre tank of regular gasoline and up to $2.30 on a full tank of diesel. This represents total relief of more than $2.3 billion. The price of gas, among many things, reflects current circumstances abroad that have an impact on Canada, which requires targeted intervention from the government to help Canadian families.
By reducing the cost of gas and diesel directly at the pump, we are taking a clear step to support families as they face the current hardships. The measure will cost a little more than $2 billion, so it will not jeopardize government finances or our other efforts to build the strongest economy in the G7.
The provinces also have their own gas and diesel taxes and, if they want, they can implement their own measures too. What we are doing is using the federal fiscal situation, which is better due in part to higher oil prices, to provide targeted support to households and businesses. Note that this support is in addition to other measures already in place. We know that too many families are struggling to make ends meet at the end of the month. People do not need abstract promises. They need real, immediate and lasting support. That is exactly what our government is providing.
That is why we launched the new Canada groceries and essentials benefit, which replaces and improves upon the old GST credit. It will provide more support to more than 12 million low- and modest-income Canadians.
In real terms, starting this spring, a one-time payment equivalent to a 50% increase in the annual value of the GST credit for 2025 and 2026 will be paid out. That amounts to $3.1 billion of immediate relief in the pockets of families. In addition, as of July of this year, the value of the benefit will increase by 25% for five years, adding another $8.6 billion in additional support. In total, a family of four will receive $1,890 this year and around $1,400 per year over the next four years. A single person will receive up to $950 this year and about $700 in subsequent years.
This is real support to pay for groceries, bills and everyday expenses. That is also why we eliminated the federal consumer fuel charge, a measure that has been in place for a year now and was formalized with the passage of Bill C‑4. Under that same bill, we also lowered taxes for nearly 22 million Canadian families by reducing the rate of the first personal income tax bracket from 15% to 14% in 2026. That is a savings of $420 per person and $840 for a two-income family.
Under Bill C‑4, we also eliminated the GST for first-time homebuyers on new homes valued at $1 million or less, while reducing the GST for homes valued between $1 million and $1.5 million. We have also reached an agreement with the Government of Ontario to further reduce taxes for homebuyers.
The government has also taken concrete measures to make the banking system fairer and more affordable for Canadians. Since March, consumers can no longer be charged more than $10 in fees when there are insufficient funds in their personal chequing account to cover a payment. Banks can no longer charge this fee more than once over a two-business-day period for the same account. Most importantly, no NSF fees can be charged when the overdraft is less than $10. This is another way our government is helping Canadians where it really counts.
The government's measures to promote affordability, including the one announced today, clearly demonstrate how the government is helping Canadian families. As the Prime Minister said today, we cannot control what other nations do, but we can control what we build for ourselves. What we are doing here is building a strong and affordable Canada, so that our country has the strongest economy in the G7.