Finance Minister Chrystia Freeland announced the advanced delivery of a tax credit for low-income workers while praising the strength of the economy during a visit to Prince Edward Island on July 28.
“This is immediate support for those working hard to get ahead,” said Ms. Freeland, in reference to the Canada Workers Benefit being delivered ahead of the next tax season.
The benefit is a refundable tax credit that can be claimed when filing an income tax return and is being provided in advance as an affordability measure.
It will be provided to families with children earning a net income of under $43,212 and singles without children earning less than $33,015.
Ms. Freeland said this can help 4.2 million Canadians, with a family being able to receive $2,600 and a single worker over $1,500.
“We know that the essential workers, the low and modest paid workers who are getting Canada Workers Benefit, they need their money right now,” said Ms. Freeland.
The finance minister said her government recognizes that Canadians are currently “feeling the pinch” with the higher prices of key life necessities.
“I know groceries are expensive, gas is expensive, rent is expensive,” she said. “Some really good news in the economy, here on PEI and across the country: We have an incredibly strong jobs market.”
Ms. Freeland has also emphasized the return of inflation within the Bank of Canada’s target range, with the latest Consumer Price Index (CPI) data coming in at 2.8 percent.
Inflation is calculated through CPI, which measures the changes in prices for a basket of goods and services. Countries measure it differently, assigning different weights to items.