Achi news desk-
Quebec intends to follow Ottawa’s lead and increase its capital gains tax rate.
The Quebec government announced later Thursday that its tax system will be adjusted to align with five measures proposed in the latest federal budget.
Quebec’s finance ministry said it wants to incorporate the increase in the capital gains inclusion rate, which is one of the key proposals in the federal budget tabled earlier this week.
Starting June 25, Ottawa intends to tax two-thirds rather than half of capital gains, which refer to profits made on the sale of assets.
The increase in the so-called inclusion rate will apply to capital gains exceeding $250,000 for individuals, as well as to all capital gains realized by corporations.
Quebec’s desire to follow the federal government’s lead on capital gains has been met with disappointment by Quebec manufacturers and exporters.
“This step will delay the investment of manufacturing companies, which is not desirable at a time when we are going through a difficult economic period and companies need to invest in order to modernize and release carbon,” said President CEO Veronique Proulx, in a press release.
Other measures taken into account by Quebec in Chrystia Freeland’s budget include increasing the lifetime capital gains exemption and introducing an incentive for Canadian entrepreneurs.
The CAQ government also wants to include an increase in the withdrawal limit of the home buyers program and temporary relief for refunds under the program.
“Our desire remains to reduce the overall tax burden on taxpayers while maintaining sound management of public finances,” Quebec Finance Minister Eric Girard said in a press release.
In an information bulletin, the Ministry of Finance states that these changes will begin to apply on the same dates as the federal measures.
This report by The Canadian Press was first published in French on April 18, 2024.
