Story perspectives

Canada Proposes 10% GST to Fund 25% Tax Cut

By Drooid · Sep 25, 2026, 2:17 PM UTC · How we work

Summary

Story summary

Canada proposes raising the GST to 10 % to fund a 25 % income-tax cut.
Economist Trevor Tombe says a 10 % GST would generate enough revenue for the tax cut.
The GST credit is renamed Canada Groceries and Essentials Benefit to offset the tax for low-income households.
Professor Jennifer Robson urges quarterly inflation adjustments and stricter eligibility for the GST credit.

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Story summary

Canada proposes raising the GST to 10 % to fund a 25 % income-tax cut.
Economist Trevor Tombe says a 10 % GST would generate enough revenue for the tax cut.
The GST credit is renamed Canada Groceries and Essentials Benefit to offset the tax for low-income households.
Professor Jennifer Robson urges quarterly inflation adjustments and stricter eligibility for the GST credit.