(File Photo/CJME News Staff)

By Rob Mahon

Chamber on GST Hike

Chamber CEO offers qualified approval of GST credit hike

Sep 13, 2022 | 4:03 PM

Inflation is on a lot of people’s minds at the moment, and the federal government made an announcement today it hopes will ease the burden on those living below a certain income level.

Prime Minister Justin Trudeau announced the federal government would double its GST credit, topping up the housing benefit, and showing more details on the first phase of the proposed dental care benefit. The GST credit is going to increase for roughly 11 million people, according to the government.

“It is a good thing, because a lot of people have been struggling with the cost of inflation,” Patty Hughes, CEO of the Prince Albert and District Chamber of Commerce, said. “The costs of things like gasoline and groceries have reached record highs this year due to a lot of things in the market, supply chain issues, the Ukraine conflict among other things.”

The GST expansion will be temporary, applied over the next six months. With money going directly into the pocket of those struggling most to make ends meet, it could make a difference for some individuals.

“It’s been a struggle for them to put fuel in their vehicle to get themselves to work to put food on the table,” Hughes said.

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Hughes said she views this as a targeted approach and a one-time payment. Coupled with the $500 cheques from the provincial government due to arrive in late fall, it seems to show different levels of government are aware inflation is a big problem.

“They are seeing it, they’re also hearing about it significantly from people, how it’s impacting them,” said Hughes. “I hear stories here, locally, in our market of what some businesses are seeing when they’re coming to make choices about what they’re purchasing, especially on the grocery side of things.”

If there’s one weakness to the credit increase from the Chamber’s perspective, it’s that it won’t make much of a difference to members fighting the rising cost of doing business.

“To me, I don’t think there will be a big impact on the businesses at all because there’s the rent, that doesn’t make a big difference in regards to our businesses on that,” Hughes said. “When you take a look at it, $500, fill that out over 12 months, it won’t make that big of an impact.”

Hughes added the programs the federal government announced today are income-targeted so people with family income above $90,000 a year might not see much benefit.

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rob.mahon@pattisonmedia.com

On Twitter: @RobMahonPxP