Canada Doubles Sales Tax Credit for Low Earners During Covid-19

Canada is sending C$5.5 billion ($3.4 billion) in sales tax relief to people with low or modest incomes to help them weather the effects of the coronavirus outbreak.

A one-time, 100% increase in the credit for goods and services tax or harmonized sales tax is being issued Thursday, a month earlier than previously announced, Alex Igolkine, spokesperson for the Canada Revenue Agency, wrote in an email.

The increase means a single person can receive C$886 and a couple can get C$1,160 for the 2019-20 fiscal year, according to the government website. A recipient can get another C$306 for each child under the age of 19, and C$580 for the first eligible child of a single parent.

The credit is normally issued four times a year to offset the cost of the sales taxes for those with lower incomes. Canada has included an extra payment equal to the total annual amount receivable among its Covid-19 emergency measures.

The federal government has announced C$250 billion in medical and economic support since the start of the crisis.

More than 12 million individuals and families qualify for the tax credit, but some may not receive it because the agency’s automated systems stop payments to those with outstanding debts, Igolkine wrote.

The agency has opened a phone line and will issue letters to anyone who makes a C$25 payment on their debt, he wrote.