Mr. Speaker, I will be sharing my time with the member for St. Catharines, who will speak after me. I am very pleased to take part in today's debate on an issue affecting all Canadians.
Our government is well aware of the pressures involved in Canada's rising cost of living, especially the rising cost of fuel, at a time of intense political tension worldwide. We recently saw the price of gas spike across the country, causing financial problems for a lot of Canadians. For many people, filling up at the gas station has become a nerve-racking experience. We understand the problem. That is why we have decided to introduce a practical measure to bring consumers some relief.
As everyone knows, a few hours ago, the Prime Minister announced that the government will suspend the federal fuel excise tax on gasoline and diesel from Monday, April 20, until Labour Day, September 7. The federal excise tax is currently 10¢ per litre for gasoline and four cents per litre for diesel. We estimate that the temporary suspension of the excise tax on gasoline and diesel for this period will save Canadian consumers up to $5.75 on a 50-litre tank of regular gas or $2.30 on a tank of diesel. This suspension will save Canadians over $2.3 billion in 2026.
Canada's new government is actively working to make life for affordable for all Canadians. For example, we introduced major tax cuts to reduce Canadians' tax burden. Since July 1, 2025, Canadians have been paying less tax because the government reduced the lowest individual income tax rate from 15% to 14%. This measure is helping some 22 million Canadians, with individuals paying up to $420 less in tax and two-income families saving up to $840 this year.
Our government also eliminated the GST for first-time new homebuyers for homes valued at $1 million or less and reduced the GST for first-time new homebuyers for homes valued between $1 million and $1.5 million. In addition, we are providing support to more than 12 million low- and modest-income Canadians to help them meet their daily needs through the new Canada groceries and essentials benefit. Specifically, we will provide a one-time top-up as soon as possible this spring, equivalent to a 50% increase in the annual value of the GST credit for 2025-26. This measure will provide immediate support of $3.1 billion to 12 million Canadians who currently receive the GST credit. Following this one-time payment made in the spring, eligible families and individuals in Canada will receive regular enhanced payments under the Canada groceries and essentials benefit starting in July 2026.
For information purposes, and for the benefit of those currently watching the House of Commons on television, people who receive the GST credit do not need to do anything. They will receive the grocery benefit. They do not need to take any action except file a tax return. By simply filing their tax return, they will receive all the benefits without having to do anything else. The benefit will increase by 25% over five years starting in July 2026, providing an additional $8.6 billion in support over the next five years. The benefit will be paid at the start of each quarter to allow families to access the funds quickly to help cover their daily expenses. Thanks to these measures, a family of four will receive up to $1,890 this year and approximately $1,400 per year over the next four years through the new Canada groceries and essentials benefit.
A single person, on the other hand, will receive up to $950 this year and approximately $700 per year for the next four years.
As soon as he took office, the Prime Minister abolished the federal consumer carbon pricing, effective April 1, 2025, which resulted in direct savings for Canadians at the pump. The government also eliminated the requirement for provinces and territories to impose a carbon price on consumers as of that date. These measures helped reduce the price of gasoline in most provinces and territories by approximately 18¢ per litre compared to 2024–25.
This measure has helped reduce inflation and lower the cost of living for all Canadians. In addition, our government has made permanent Canada's national school food program, which provides school meals to nearly 400,000 children each year, allowing participating families with two school-aged children to save approximately $800 a year on groceries.
We have also introduced automatic federal benefits for the 2026 tax year to ensure that up to 5.5 million low-income Canadians automatically receive the benefits they are entitled to by the 2028 tax year, including the Canada groceries and essentials benefit and the Canada child benefit. What is more, we have implemented ambitious pro-competition measures in the telecommunications and financial sectors to boost competition and lower prices, making it easier for Canadians to switch providers and pay lower bank and service fees.
In conclusion, at a time when disruptions in global supply chains and geopolitical tensions are driving up prices, our government is taking action. Our government's goal is to build a stronger economy to create more job opportunities and boost wages. At the same time, we are cutting costs to make life more affordable across the country. This is how we will be able to offer more Canadians greater certainty, security and prosperity, now and in the future. Furthermore, with the measure announced today by the Prime Minister, we will provide additional relief to Canadian consumers of gasoline and diesel. They will be able to save some of their hard-earned money and purchase other goods their families need.
Our government is building a stronger economy to make life more affordable for all Canadians. To that end, we are establishing new trade and investment partnerships abroad and enhancing our domestic strengths to create great career opportunities and higher wages for Canadians. As my colleagues surely know, I sit on the Standing Committee on International Trade. We are working very hard to secure additional trade agreements so that we are less vulnerable to the country south of the border. We are working very hard, and this will create good jobs here in Canada.
In addition, we are implementing a number of concrete measures to ensure that Canadians get the support they need right now. Our government has introduced a range of new cost-cutting measures, including a tax cut for 22 million Canadians, a plan to fast-track residential construction, and the production and expansion of critical social programs.