A 25-per cent GST credit top-up and a one-time payment worth half of the annual GST credit are expected this spring for those who qualify.
The move comes as the price of groceries continues to climb.
One expert says the move is an effective way to transfer purchasing power back to households in the lower-income bracket.
“Because it’s operating through the tax system, it’s automatic. You don’t have to apply. It will come in,” said Herb Emery, UNB Vaughan Chair in Regional Economics.
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“The main complaint I would have about it is I wish it were more generous.”
Stephane Sirois, executive director of Feed NB, said they’re seeing more working families using food banks.
“That’s where this GST rebate will be very useful and seniors who are retired as well, they’re on a fixed income,” he said.
However, he said this is a band-aid solution and the real long-term relief would mean closing the gap between the living wage and minimum wage.
A University of Toronto study showed that in 2024, two in five children in New Brunswick were living in food-insecure households — the highest rate in the country.
Food insecurity has doubled since 2019 in New Brunswick, remaining well above the national average according to a Stats Can report.
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