Mr. Speaker, it is an honour to rise in this House as I begin my journey as a member of Parliament for the wonderful riding of Scarborough Southwest. I am delighted to be back in the House after the summer break, when we had a chance to talk to our constituents, go to events and meet with a lot of constituents to find out the struggles they are facing. It is great to be back to speak to the issues we heard about from our constituents. My riding has people from all different backgrounds; it is a very diverse riding. People across my riding, just like those across Canada, are struggling right now, especially with affordability and making ends meet. Today, I am delighted to speak on behalf of my constituents about Bill C-38, the Canadian fuel affordability act.
We have heard from across the aisle and throughout this afternoon about the importance of this legislation. This government's effort has been to make life more affordable for Canadians across this country. Canadians are living through a period of economic uncertainty shaped by global instability and rising costs. The United States, as we know, has imposed new tariffs on Canada designed to hurt and divide us. At the same time, we know what is happening across Europe and the Middle East, which is also driving up prices around the world, especially here at home. In response, our government continues to focus on what we can control: building a strong Canadian economy, diversifying our trade partners abroad, delivering responsible fiscal management and supporting Canadians who are under pressure from everyday expenses.
Throughout the summer, I heard from my constituents about the increase in the cost of living. Many are worried about the increasing price of essential goods like fuel, food, housing and other daily necessities.
Before I forget, I would like to mention that I will be sharing my time with the member for Portage—Lisgar.
Our government understands these pressures, and we are taking concrete and responsible actions to ease the burdens that many Canadians are facing, all while safeguarding long-term economic stability. That includes immediate support for daily costs. We know we have to make long-term plans, but at the same time we have to help the people who are struggling this very day.
In April, we temporarily lifted the excise tax on gasoline and diesel through the summer months, initially planned until Labour Day. On the first day that took place, which is actually the same time I joined this House, back in April, gasoline prices declined by 11¢ per litre. That is real money back in the pockets of hard-working Canadians. This delivered immediate relief to consumers, including those in my riding of Scarborough Southwest.
Knowing that Canadians are still feeling pressure, earlier this month the Minister of Finance announced an extension of this measure until January 31, 2027, after which 50% of the regular excise tax rate would apply from February 1 through to March 31, 2027. This measure is expected to continue reducing Canadians' costs at the pump by up to 10¢ per litre for gasoline and four cents per litre for diesel until February 2027, and by up to five cents per litre for gasoline and two cents per litre for diesel until April 2027.
These are measures that we know work, and we are continuing them. All told, they are estimated to provide $5.3 billion in total tax relief for Canadians, of which $2.9 billion is from the September extension alone. The pause in the excise tax lowers prices at the pumps and helps reduce transportation and production costs across the economy. We heard in this House and from those across our ridings about the impact. It is supporting families, farmers, truck drivers and the businesses that rely on them to move goods. In fact, all Canadians will see benefits from this measure.
However, that is not the only thing we have done to make life more affordable for Canadians. Our government has also introduced the new Canada groceries and essentials benefit, which is providing additional significant support for more than 12 million Canadians. It is based on the goods and services tax credit, but it is more generous. As of July 2026, payment amounts have increased by 25% for five years, and in June, those 12 million Canadians received a one-time top-up payment. Again, that is real money back in the pockets of hard-working Canadians. Combined, this means that a family of four will receive up to $1,890 this year and a single person up to $950 this year.
We know that housing affordability continues to challenge many Canadians, especially those trying to purchase their first home. This is why we eliminated the GST for first-time homebuyers on new homes valued up to $1 million, a measure that can provide savings of up to $50,000. We also extended the grace period under the homebuyers' plan from two to five years for participants making a first withdrawal, until the end of 2028. This will provide cash flow relief of up to $4,000 per person per year for three years and will help households manage early expenses during the crucial first year of home ownership. I know how important that is, because when I talk to young people, some of them feel like they do not know if they can even dream of buying their own home for the first time.
Taken together, these and other actions reflect a balanced approach. What that means is immediate cost relief, targeted support for those who need it most and prudent management of the public purse.
Canada has the fiscal capacity to draw on our strengths and respond to global challenges. That is exactly what we are doing. We had the fastest-growing economy in the G7 in Q2 2026 and have managed our finances in a way that has reduced our deficit for 2025-26. While revenues have grown, we have directed most of this increase to helping Canadians with the cost of living. This is the balance that Canadians expect from their government: responding to global challenges with a responsible and pragmatic fiscal approach.
We cannot control global forces. As our Prime Minister has said, we cannot expect to control what is happening outside, but we can control what happens here. We cannot control the global forces that drive up prices, but we can control how we respond to them.
Our government is cutting taxes to help Canadians manage everyday expenses while we build a stronger, more independent economy. We will continue to respond to affordability pressures with fairness, discipline and a focus on results for Canadians, because that is what Canadians expect and that is what Canadians deserve. That is what Bill C-38 would do. This is how we build Canada strong for all.