Achi news desk-
OTTAWA –
With a variety of fiscal and policy measures announced in the federal budget, here’s a look at some of the winners and losers:
Winner: Small businesses
Carbon tax refunds for small businesses come five years after consumers started receiving their share. The bill is “a big relief,” said Dan Kelly of the Canadian Federation of Independent Businesses, which represents the sector. The budget says as many as 600,000 small companies would be eligible for a share of $2.5 billion.
Loser: tobacco industry
The federal government will collect an additional $4 per carton of 200 cigarettes starting Wednesday, on top of the $1.49 added on April 1 as part of an automatic inflation adjustment. For vaping products, identified in the budget as a public health issue affecting younger Canadians who have been “seduced by appealing marketing,” vaping tax rates will increase by 12 per cent, or between 12 and 24 cents per pod typical vape. Together, the measures should generate about $1.7 billion in the next five years.
Winner (eventually): fintech companies
Long-promised details of a framework for open banking – a system that allows users to easily access their financial data across multiple institutions, apps and services – were revealed in Wednesday’s budget, although the details were reserved for legislation to be presented before the end of the year. It names the Financial Consumer Agency of Canada to oversee and enforce the system and sets out six core elements for the framework.
The budget also sets aside $4.1 million over three years for the Department of Finance to complete the policy work necessary to establish and maintain the entity and the oversight framework. The financial sector will welcome any clarity on this file after years of seeing the can implemented, but it is not clear what the implementation timetable will be.
Loser: Canada’s pension funds
An increasingly loud debate has emerged over whether the country’s largest pension funds should invest more of their capital in Canada. They say they are already investing here and that higher returns can be found overseas, while supporters of the move argue that money should be spent to help improve productivity and business investment at home. The government says it will create a working group led by finance minister and former Bank of Canada governor Stephen Poloz to explore ways to stimulate spending in Canada, but it doesn’t appear to have much teeth.
Meanwhile, the government says it will require financial regulator OSFI to publish information about the investments of large federally regulated pension plans. That could see even more scrutiny from climate change activists and interest groups hoping to influence investment decisions.
Winner: Mobile phone and internet users
Wireless costs are too high, telecoms industry watchers told MPs studying mobile phone plans earlier this year, even as prices have fallen in recent years.
In the budget, the government says it will make it easier to renew or switch between mobile phone plans, something advocates say makes it easier to get a better rate. It will also require carriers to provide some sort of self-service option, such as an online portal, so customers can change plans more easily.
Loser: Entertainment lovers
Canadians have long complained about rising ticket prices for concerts and sports tickets. Those prices are more exorbitant when tickets are bought from retailers who pick up seats using “bot” technology the moment they go on sale, keeping them out of the hands of fans.
The budget says the federal government will work with provinces and territories to adopt ticketing best practices that reduce unexpected charges during the purchase process, crack down on fraudulent sellers and ensure Canadians get timely refunds when events are cancelled. However, it offers no plan with enforceable measures or time limits to carry out these feats, which could leave Canadians fighting scalpers even longer.
This report was first published by The Canadian Press on April 16, 2024.
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