moved that Bill C-38, An Act to amend the Excise Tax Act (extension of the federal fuel excise tax relief), be read the second time and referred to a committee.
Mr. Speaker, I am very pleased to be back here this morning.
It is a pleasure to see all my colleagues. I see a lot of smiles in the House on both sides of the aisle. It is great to be back and it is great to be surrounded by so many familiar faces. It is great to see some new faces on this side of the aisle, and I want to welcome them to Parliament. Yes, they have been elected and now they are representing their constituents with distinction and a lot of energy.
Like all members, I spent the summer meeting with Canadians, as we should all do, in Charlottetown, Edmonton, Toronto and obviously in my own riding of Saint-Maurice—Champlain, all of whom, like us, are trying to navigate a rapidly changing world. For those Canadians, I have good news, which is why it is an honour for me to participate in today's debate on the very important bill, Bill C-38, the Canadian fuel affordability act.
The measures set out in this bill will give Canadians the support they need right now.
We are faced with a world that is increasingly complex, increasingly volatile and, for many, more costly and unpredictable. The United States is imposing new tariffs on Canada. Global conflict and ongoing supply disruptions in the Middle East have been driving up fuel prices around the world, adding pressure to household budgets here and in many jurisdictions. In response, Canada's government remains focused on what we can control: building a stronger, more independent and more affordable country.
Economic uncertainty and the rising cost of living mean that affordability is a major concern for families and businesses across Canada. One of our government's priorities is to help Canadians keep more of their hard-earned money. While we are working tirelessly to make Canada stronger in the long term, we are giving Canadians a hand today to help them bridge the gap to this better and more certain future.
Our government is diversifying our trade partners abroad, attracting historic levels of foreign direct investment, and I am sure everyone took notice of the great investment summit we had; delivering responsible fiscal management as every Canadian expects from this government; and supporting Canadians while under pressure from everyday expenses. There is no doubt that Bill C-38 is a key part of this effort.
Bill C-38 is just the latest initiative by our government designed to help Canadians cope with elevated fuel costs. Members will recall that in April of this year, we introduced a temporary suspension of the federal fuel excise tax on gasoline, aviation gasoline, diesel fuel and aviation fuel. This measure reduced federal fuel excise tax rates to zero cents per litre. The positive effects were felt right away.
When the suspension took effect, gas prices dropped by 11¢ per litre on day one. Again, that was 11¢ per litre on day one. Clearly, the savings were passed on to consumers right away. The suspension was set to end earlier this month, after September 7, but before that date, our government announced that it would be extending the suspension of the federal excise tax on fuel until January 31, 2027, and then reducing the regular rates by 50% through March 31, 2027.
The passage of Bill C-38 would ensure that Canadians get this much-needed relief at the pump right now. This would be immediate, targeted and felt across our nation. This measure has already brought down everyday costs for Canadians, including those in trucking, in the food industry, in agriculture, in housing, in construction and in the delivery sectors.
This provides Canadians with immediate, substantial support. The additional fiscal impact of extending the federal fuel excise tax suspension is estimated at approximately $2.9 billion. All told, Canadians are expected to receive an estimated $5.3 billion in tax relief in 2026 and 2027.
We know that this measure will continue to make a difference for Canadians, and we also know that extending the fuel tax suspension is one of the measures helping families, workers and businesses cope with global economic uncertainty.
Let me put this measure in context and talk about fiscal responsibility and economic strength, because Canada is entering this period of a new world economic order in a position of strength. Canada's economy has remained resilient, despite global challenges. I want to take this opportunity in my first address to Parliament in this session as we come back to thank all the workers around this country. They have proven extremely resilient. I want to thank all the business owners. I think they deserve a big round of applause, because they are the ones who make this country work every day. I want to thank the countless small and medium-sized businesses across our country, which have proven resilient.
The world has seen that Canada is far more resilient than people expected. Despite the winds bringing tariffs and other uncertainty in the world, Canada has shown a degree of resiliency that is an inspiration to all of us and to the world. In fact, Canada's economy is so resilient that our country is projected by the International Monetary Fund to have the second-fastest economic growth in the G7 this year and next. This is a testament to the resilience of our people, our workers and our businesses across the country.
This performance has put us in a solid fiscal position. As highlighted in the spring economic update, we have reduced Canada's projected deficit for 2025-26 by more than $11 billion relative to budget 2025. That fiscal firepower is allowing us to build a Canada that is both strong and fair. As government revenues have increased, we have redirected some of that growth toward measures to improve affordability and support Canadians at a time of need.
These measures are having a real impact on the lives of Canadians across the country. As Canada continues to build a stronger, more resilient and more independent economy, our government is taking concrete steps to bring down costs now while investing in long-term prosperity. For example, we are going to double the capacity of Canada's electricity grid to ensure a supply of clean, reliable, affordable energy produced right here at home.
Our government has already accomplished much in helping bring down costs for Canadians. We have cut income taxes for 22 million Canadians by lowering the first marginal personal income tax rate from 15% to 14% as of July 1, 2025. In fact, it was the very first measure of this new government. This is providing tax relief of up to $420 a year per person or up to $840 a year for two-income families. We have eliminated the goods and services tax for first-time homebuyers on new homes worth up to $1 million and reduced the GST for first-time homebuyers on new homes between $1 million and $1.5 million.
This relief has allowed more Canadians, particularly young families, to achieve their dream of home ownership. We eliminated the federal consumer carbon price as of April 1, 2025, directly saving Canadians money at the pump. On that same day, our government also removed the requirement for the provinces and territories to have a consumer-facing carbon price.
To deliver additional support for more than 12 million Canadians, we also launched the new Canada groceries and essential benefit, a flagship measure that is immediate, targeted and meaningful for families across our country. It provides a family up to $1,890 this year and about $1,400 a year for the next four years and provides a single person up to $950 this year and about $700 a year for the next four years. This is meaningful, and it is going to help Canadians across our nation, but there is much more.
We made the national school food program permanent, which is something every member of the House should be proud of. This is a game-changer for so many kids in our country and so many families. We just have to talk school teachers to know how much this is appreciated and is making a meaningful difference. It is going to provide school meals for up to 400,000 children per year. These are the kinds of things we were elected to do: to be there for children, to be there for families and to be there for Canadians. This is going to save participating families with two children in school an estimated $800 annually on groceries. This is really meaningful for many people.
We also introduced automatic federal benefits, starting in the 2026 tax year, to ensure that up to five million low-income Canadians automatically receive the benefits they qualify for in the 2028 tax year. This is something that is very meaningful. It is the right thing to do to support Canadians.
Canada is well positioned to respond to external pressures from the increasingly fragmented and uncertain world beyond our borders. We cannot control the global forces driving up prices, but we can control how we react to them.
Our government is cutting taxes and boosting affordability to help Canadians manage everyday expenses, while building a more robust, more independent economy. Canadians see it, and they are behind this project to make Canada strong.
It is not a coincidence that our government made this bill one of our first priorities of the new fall session. Canadians are expecting swift and concrete action from all of us, and when I say all of us, it is not not just those members sitting on this side of the aisle, but I am looking at my colleagues who are here this morning. They expect all of us to address the cost of living challenges, and today we are offering an opportunity for every member of the House not only to speak but also to take a step to support Canadian families.
Canadians across the nation will be watching what people will do today, because it is sending a message that we stand with them. We are there for them, and that is the kind of message Canadians expect from the House. We are delivering for Canadians and expect all members of the House to do the same. The passage of this legislation would advance our government's important work to bring down costs for Canadians today while building a stronger economy for generations to come.
I urge all hon. members to pass Bill C-38 without delay. Let us seize the moment. Let us be ambitious. Let us be there for Canadians together.