Cost Estimate of the Grocery Rebate
Bill C-46/C-47 proposes a grocery rebate to support families who are the most affected by inflation. The rebate will be delivered through the Goods and Services Tax credit.
The PBO estimates the cost of the Grocery Rebate to be $2.4 billion in 2023-24.
Bill C-46/C-47 proposes a grocery rebate to support families who are the most affected by inflation. The rebate will be delivered through the Goods and Services Tax credit.
The Grocery Rebate was calculated as the difference between the temporarily enhanced Goods and Services Tax (GST) credit under the terms of Bill C-46/C-47 and the status quo quarterly GST credit amount.
To calculate the total grocery rebate, the GST credit parameters in Statistics Canada’s Social Policy Simulation Database and Model (SPSD/M) were adjusted to reflect the new policy changes regarding individual amounts, income limits, and reduction rates.[^1]
PBO does not expect any material incremental administrative costs.
The SPSD/M family income distribution is used for the calculations assuming a full take-up rate of GST/HST credit. A behavioural response is not expected.