2023-12-29 05:00:00
You think you’ve seen it all? Think once more. Even with a lot of willpower, your expenses are likely to continue to grow. To convince you, here is an overview of the price increases and tariffs already announced which will be difficult for you to avoid. You might as well prepare for it. Tie on your hats.
• Read also: A first in history: sales in grocery stores fell in Quebec in 2023, while the population increased
Grocery basket on the rise
Food will continue to be hit hard by inflation. The cost of the grocery basket is expected to increase by 2.5% to 4.5% in 2024, experts predict.
The largest increases will affect bakery products, meat and vegetables. The price of these foods is expected to jump 5% to 7% during the year.
For a family of four, two adults and two children, food expenses might total $16,297. This represents an increase of $701.79, or 4.5% compared to the budget of the same family in 2023 ($15,595).
These forecasts come from Annual Food Price Report. Expected every year, the document is the result of collaboration between the universities of Dalhousie, Guelph, Saskatchewan and British Columbia.
Hydro-Québec: electricity rates on the rise
Rate freezes seem to be a thing of the past at Hydro-Québec. On the eve of relaunching major hydroelectric projects, Michael Sabia – Sophie Brochu’s successor at the head of the state company – does not hide it.
The significance of the increases to come in 2024 has not yet been specified. But if a promise from Prime Minister François Legault is to be believed, residential bill rates should not increase by more than 3% per year until 2035!
The increase might, however, be more costly for businesses, Mr. Sabia warned in the parliamentary committee. “An increase at certain levels for business customers? Yes, it is very likely,” he said.
Municipal taxes on the rise
Several municipalities have already warned of an increase in property taxes for next year. In Montreal, Mayor Valérie Plante announced an average increase of 4.9% for residential buildings and 4.6% for commercial buildings. In Laval and Longueuil, the residential tax increases will be 4.8% and 5.8% respectively.
In Gatineau and Sherbrooke, residents will face increases of 2.9% and 3.13% respectively. In Quebec, Mayor Bruno Marchand announced an increase of 3.9% on average, while in Lévis, on the South Shore, the increase will reach 7.7%, the highest increase since 2002.
Contributions to the Quebec Pension Plan on the rise
Starting January 1, 2024, the maximum contribution to the Quebec Pension Plan (QPP) increases by $620, to reach $8,696. The Quebec government is thus giving us an increase of 7.7% compared to the maximum contribution for 2023.
If you are an employee, you will have to pay the sum of $4,348 into the QPP and your employer will do the same by paying $4,348 into your QPP. If you are self-employed, you will be required to pay the total contribution, i.e. $8,696.
Employment insurance premium on the rise
The Quebec employment insurance premium rate and the maximum threshold for insurable earnings will increase in 2024. This means that employees will pay up to $834, while employers will pay $1,168 to Quebec employment insurance. Quebec in 2024. This represents an increase of $53 in employment insurance tax for employees and $75 for employers. Self-employed workers will assume the entirety of these contribution increases, i.e. $128.
Income taxes falling
In its latest budget, the CAQ government of François Legault lowered the tax rate on the first two income brackets by one percentage point. For the Quebec chapter of the Canadian Taxpayers Federation (FCC), this means that taxpayers will save up to a maximum of $814 by filing their 2023 tax returns. The FCC welcomes this first tax cut in twenty years, but at the same time decries the general increase in prices that accompanies it.
SAAQ: driving licenses down
For a third consecutive year, the Legault government is offering a discount to motorists. They will only have to pay $25.50 to obtain their driving license from the Société d’assurance automobile du Québec (SAAQ). For 2024, this represents a saving of $101.55 for holders of the class 5 license, the most used. By this decision, some deplored, Quebec is depriving itself of revenue of $600M, a sum which might have been used for other purposes such as the development of public transport.
Public transport: transport tickets on the rise
Underfunded by Quebec, few transport companies will be able to avoid price increases for their users in 2024. The Regional Metropolitan Transport Authority (ARTM), responsible for managing public transport in Greater Montreal, has given itself until May to announce its colors. Meanwhile in Quebec, the Réseau de Transport de la Capitale (RCT) has already announced that it would have no other choice but to increase its rates this spring. Its president indicated that it would approach 2.5%.
Elsewhere, the price shock will be felt more quickly. Starting January 1, the Société de transport de Sherbrooke (STS) will increase fares from 2% to 3%. The regular monthly pass increases from $2.50 to $87.50 while the pass for those under 21 will increase from $64.50 to $66.50. The monthly rate for seniors increases by $1.25 while the family plan increases by $2. In Gatineau, users of the Société de transport de l’Outaouais (STO) will see their one-way ticket jump to $4.50 and the monthly pass will rise to $110, an increase of $5 per month or of $60 per year.
Travel: airport costs on the rise
Aéroports de Montréal, the manager of Dorval and Mirabel airports, confirms an increase in its airport improvement fees (FAA). As of March 1, the FAA will increase from $35 to $40 (plus taxes) for passengers departing from Montreal-Trudeau airport. This is an increase of 14.3% compared to its current rate. Meanwhile, at Quebec Jean-Lesage Airport (YQB), it is announced that for a seventh consecutive year, no increase will be applied to airport improvement fees and general aviation fees in 2024. The FAA from Quebec airport are therefore maintained at $35 plus taxes.
Federal alcohol tax on the rise:
The federal excise tax on beer, wine and spirits increases on April 1 each year. The year 2024 will be no exception; the alcohol tax will increase by 4.7%. According to the Canadian Taxpayers Federation, this tax increase will cost Canadians nearly $100 million in 2024. According to Beer Canada, this new tax increase will result in a price increase of $0.20 per bottle of beer over a case of 24.
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