Ottawa’s plans for GST relief set to cost $12.4 billion over 5 years, PBO says

The federal government’s plan to increase the GST credit and offer a one-time payment to Canadians will cost Ottawa an estimated $12.4 billion over five years.

The Office of the Parliamentary Budget Officer released the estimate this morning.

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Prime Minister Mark Carney promised last week new affordability measures to help lower-income consumers deal with the high cost of groceries, including a 25 per cent hike to the GST credit over the next five years and a one-time payment in the spring worth 50 per cent of the credit.

The PBO report estimates the one-time payment will cost more than $3 billion this year, while the annual increases will cost between $1.7 billion and $1.9 billion annually through to 2031.

The existing GST credit is paid out quarterly and is targeted at families with low and modest incomes. More than 12 million Canadians are expected to be eligible for the new benefit.

Conservative leader Pierre Poilievre has said his MPs will support the measure, despite calling it a “Band-Aid solution.”

This report by The Canadian Press was first published Feb. 2, 2026.

— With files from Kyle Duggan and Craig Lord