Madam Speaker, I will be sharing my time with the member for Surrey Newton.
I want to start by giving my thanks for the opportunity to contribute to today's debate on Bill C-38, the Canadian fuel affordability act.
The world is changing rapidly, but Canada is starting from a position of strength. Events like new tariffs, trade tensions and conflicts abroad continue to affect costs for households and businesses and create uncertainty for Canadians, but we all know that Canada is well positioned to manage these pressures thanks to our robust economy and our clear growth strategy, which is focused on driving investment, boosting productivity, strengthening domestic industries and expanding access to global markets.
In Canada, we have the good fortune of being a net energy exporter. Our resource wealth insulates us from the worst impacts of these disruptions. Canada is an energy superpower, and our government is capitalizing on this advantage by building new infrastructure projects that will increase our energy supply, with new nuclear, new hydro and new LNG facilities. However, we are not immune to systemic global shocks. That is why our government is taking action to help Canadians through these challenges.
In April, our government temporarily suspended the federal fuel excise tax following disruptions to crude oil shipments through the Strait of Hormuz that drove up fuel prices. The measures have been saving Canadians and Canadian businesses up to 10¢ per litre on gasoline and unleaded aviation gasoline, up to 11¢ per litre on leaded aviation gasoline and up to four cents per litre on diesel and aviation fuel.
When the temporary suspension of the federal fuel excise tax was first introduced, gasoline prices declined by 11¢ per litre on the first day of implementation, delivering immediate relief to consumers. With today's legislation, we are continuing to provide relief at the pump by proposing to extend the temporary suspension of the federal fuel excise tax until January 31, 2027, and then applying 50% of the regular excise tax rate from February 1 through to May 31, 2027, inclusively. This will bring down costs for Canadians, including truckers and businesses in the food, agriculture, housing, construction and delivery sectors. This means we are delivering timely, meaningful and tangible relief for Canadians at a time when they need it the most. By reducing pressure on fuel costs at the pump for gasoline and diesel, we are taking concrete steps to lower costs for Canadians today while we continue to build a stronger, more resilient and more independent economy.
This action builds on one of the very first measures we took as a government, which also lowered costs at the pump in most provinces and territories. The House 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 also understands that Canadians do not just spend money on gasoline. That is why we have been taking action to reduce pressure on costs and make life more affordable for Canadians across the board. For example, our government introduced the new Canada groceries and essentials benefit. By building upon the former goods and services tax credit, we are increasing its amount by 25% for five years as of July. In addition to that, we provided a one-time payment in June, equivalent to a 50% increase in the 2025-26 annual value of the GST credit. Combined, this means a family of four will receive up to $1,890 this year and about $1,400 a year for the next four years, while a single person will receive up to $950 this year and about $700 a year for the next four years. That is literally making life more affordable for millions and millions of Canadians. In fact, the new Canada groceries and essentials benefit will provide additional significant support for up to 12 million Canadians.
Not only are we putting more money in the pockets of those who need it the most, but we are also leaving more money in their pockets with our middle-class tax cut, because we have lowered the first marginal personal income tax rate from 15% to 14% since July 1, 2025. Nearly 22 million Canadians are benefiting from this tax relief of up to $420 per person, saving a two-income family $840 this year.
This rate reduction applies to a taxable income of up to $58,523 in 2026, providing meaningful relief to Canadians during the current period of economic uncertainty. What is more, the bulk of tax relief will go to those with incomes in the two lowest tax brackets, including nearly half to those in the first bracket. This means the relief is effectively targeted to Canadians who need help the most.
In this regard, no one is more important to consider than our children. That is why we made the national school food program permanent. It provides meals to up to 400,000 kids annually. This program helps ensure that kids are fed healthy meals at school, and it saves families with two children up to $800 a year on groceries. By making it permanent, we will work with provinces, territories and indigenous partners to expand the program into more schools across Canada.
We are also aware that affordability pressures go beyond fuel and food and are affecting other essential expenses, including housing. That is why we introduced the first-time homebuyers' GST rebate. With this rebate, we will have effectively eliminated the GST for first-time homebuyers on new homes up to $1 million and reduced the GST for first-time homebuyers on new homes between $1 million and $1.5 million. This tax cut for first-time homebuyers will save Canadians up to $50,000, allowing more young people and families to enter the housing market and making the goal of home ownership a reality for more Canadians.
These are just a few of the examples of how we are bringing costs down for Canadians. By lowering costs, the government is creating an economy where every Canadian has more control over building their own future. Above all, our government will empower Canadians by helping them get ahead and reduce their cost of living. When Canadians keep more of the money they earn, they are better supporting their families, investing in their communities and building the future they want.
That is why I strongly encourage all members of this House to support Bill C-38, so that we can build a strong Canada for all.