Unpopular tax changes were addressed ahead of election announcement
Mark Carney has announced that the government will cancel the planned changes to the capital gains tax rules, ahead of calling a general election.
The prime minister said Friday that the increase of the capital gains inclusion rate would be scrapped while the increase in the Lifetime Capital Gains Exemption limit to $1,250,000 on the sale of small business shares and farming and fishing property would be maintained.
The legislation to change the inclusion rate had not received royal assent when Parliament was prorogued by Justin Trudeau and therefore died on the order paper. Carney said his government plans to introduce legislation affecting the increase in the Lifetime Capital Gains Exemption limit if it wins the election.
The federal election was called Sunday and will take place on April 28, 2025, with any major government decisions on hold until after that date due to the caretaker convention. The carbon tax policy of his predecessor was dismantled on Carney’s first day in office.
During the 37-day campaign, just one day longer than the legal minimum, both Carney and his challengers will focus on the economy with those aiming to oust the Liberals blaming the incumbent government, if not its so-far short-lived leader. For his part, the prime minster will try to turn the narrative to his plans rather than what happened under Justin Trudeau, especially as Carney has yet to be elected as an MP.
A range of tariffs are due to be implemented by the Trump administration on April 2, but there has been some suggestion over the weekend that this may only be reciprocal tariffs rather than industry-specific levies that the president had been threatening.
