Mr. Speaker, I appreciate your allowing me to speak to Bill C-38, the Canadian fuel affordability act.
While Canada is starting from a position of strength, the global economy is becoming increasingly uncertain. New and unjustified tariffs, trade tensions, and conflicts in the Middle East and Europe are driving up costs for households and businesses and are creating economic uncertainty here at home for all Canadians. Our government recognizes this and is taking action to help Canadians manage rising costs and navigate these global economic uncertainties. Earlier this year, we temporarily suspended the federal fuel excise tax, saving Canadians and Canadian businesses 10¢ per litre on gasoline and 11¢ per litre on leaded aviation fuel. The impact was immediate, with gasoline prices declining by 11¢ per litre on the first day of implementation. That was real relief for Canadians from coast to coast to coast.
Building on our decision earlier this month, the Minister of Finance and National Revenue announced our intention to extend that temporary suspension until January 31, 2027, and apply 50% of the regular excise tax rate from February 1 through March 31, 2027. That means that Canadians in my riding of Mississauga—Lakeshore on the shores of the great Lake Ontario would benefit with extended relief and continued cost reduction per litre for gasoline and diesel. Let me be clear: This measure would help lower costs for Canadians, including truckers and businesses in the food and agriculture, housing, construction and delivery sectors. This is another example of our government's delivering timely and meaningful relief when Canadians need it most.
By reducing pressure on gasoline and diesel prices, we would be helping Canadians manage today's challenges, while laying the foundation for longer-term growth and prosperity as we build on the strongest economy in the G7. This is just one part of a broader effort to lower costs for Canadians. It is one of the first measures our government took after assuming office. Members opposite will recall that one of the first things the Prime Minister did upon assuming office was to cancel the consumer fuel charge, helping Canadians to save money at the pump in most provinces and territories. Our government also removed the requirement for provinces and territories to have a consumer-facing carbon price as of April 1, 2025.
At the same time, our government recognizes that affordability challenges extend well beyond the cost of fuel, and that is why we have taken additional steps to put money, and more money, back into Canadians' pockets. For example, we introduced the new Canada groceries and essentials benefit. By building on the former goods and services tax credit, we are increasing the amount provided to low- and modest-income Canadians by 25% for the first five years, as of July, 2026. In addition to that, we provided a one-time payment in June, equivalent to 50% of increases in 2025-26, with an annual value of the GST credit.
Our government is responding to global challenges with a responsible and pragmatic fiscal approach. It is important to note that while we may not control every global event, with respect to the ones that are impacting prices, I want to assure my hon. colleagues and all Canadians that our government is doing what is necessary to take and make a deal that helps those impacts. By lowering costs for Canadians from coast to coast to coast, the government is providing supports to their affordability challenge while creating an economy where Canadians have more control in building their own future. Above all, these government measures will empower Canadians to get ahead and minimize the impacts on their cost of living.
Canadians naturally want to keep more of the money they earn. They want greater opportunities to support their families, invest in their communities and build their future with confidence. Our country is at a crossroads. Many people around the world choose Canada. New Canadians are seeking freedom and opportunity. Throughout history, Canadians have proven themselves to be resilient, to overcome adversity, and over the years, they have grown more prosperous. They will continue to build. We will persevere, more united than ever, to protect our sovereignty and strengthen its resolve. Standing together, we are navigating this crossroads.
I returned recently from overseas, and I had witnessed many around the world celebrating Canada's standing. The Prime Minister is sought after for his leadership and experience, just as much as Canada is sought after for its critical minerals and untapped potential. Canada is valued as a trusted partner that abides by the rule of law and social justice.
As chair of the defence committee, I can attest that boosting Canada's defence industrial strategy is renewing our confidence while stimulating our economy. More than that, it bolsters our national pride. Events recently, such as the major attraction at the investment summit, speak volumes. They will enable major projects and build our economy, which sustains and supports the social programs Canadians rely on and expect. Just as the EU and so many around the world welcome Canada, we welcome every effort to broaden our reach and foster relations to reduce geopolitical threats that have impacted price challenges here at home.
This bill would help support Canadians, and I hope my colleagues will support this measure for the greater benefit of all Canadians.