Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Factbox-Canada budget 2023-24: key measures and proposals

Published 2023-03-28, 04:07 p/m
Updated 2023-03-28, 04:58 p/m
© Reuters. FILE PHOTO: A person shops for fruits at a supermarket in Ottawa, Ontario, Canada , March 27, 2023.  REUTERS/Patrick Doyle

© Reuters. FILE PHOTO: A person shops for fruits at a supermarket in Ottawa, Ontario, Canada , March 27, 2023. REUTERS/Patrick Doyle

OTTAWA (Reuters) -Here are some of the key government measures and proposals outlined in Canada's 2023-24 budget presented by Finance Minister Chrystia Freeland on Tuesday.

- Grocery rebate

A one-time grocery rebate, providing C$2.5 billion ($1.84 billion) in targeted inflation relief for 11 million low- and modest-income Canadians and families.

- Dental care expansion

Proposal to introduce legislation for a new dental care plan for uninsured Canadians with family income less than C$90,000 annually.

- Taxing wealthy Canadians

Legislative amendment proposals to raise Alternative Minimum Tax (AMT) to 20.5% from 15%. Proposed reforms would also significantly increase the income level necessary to pay the AMT.

- Crypto assets

Canada's financial regulator will consult financial institutions on guidelines for publicly disclosing their exposure to crypto assets. Ottawa will also require federally regulated pension funds to disclose their crypto asset exposures to the Office of the Superintendent of Financial Institutions.

- Tax on share buybacks

A proposed 2% tax on share buybacks by public corporations in Canada would apply as of Jan. 1, 2024. A business would not be subject to the tax in a year if its gross repurchases of equity were less than C$1 million. The tax is estimated to increase federal revenues by C$2.5 billion over five years, starting in 2023-24.

- Taxation of dividends received by financial institutions

Proposes to amend the Income Tax Act to treat dividends

received on Canadian shares held by financial institutions in the ordinary course of their business as business income. This measure would apply to dividends received after 2023, which would increase federal revenues by C$3.15 billion over five years starting in 2024-25, and by C$790 million ongoing.

- Right to repair

Government to work toward implementing a right to repair, aimed at making it easier and cheaper to repair home appliance and electronics.

- Standard charging port

Government to explore implementing a standard charging port in Canada for phones, tablets, cameras, laptops and other electronic devices.

- Lower credit card fees

Government has secured commitments from Visa (NYSE:V) and MasterCard to lower fees for small businesses, while also protecting reward points for consumers offered by Canada's large banks.

- Clean Electricity Investment Tax Credit

Proposal to introduce a 15% refundable tax credit for eligible investments in non-emitting electricity generation

systems, abated natural gas electricity-fired electricity generation, stationary electricity storage systems and equipment for transmitting electricity between provinces and territories.

- Clean Technology Manufacturing Investment Tax Credit

© Reuters. FILE PHOTO: A person shops for fruits at a supermarket in Ottawa, Ontario, Canada , March 27, 2023.  REUTERS/Patrick Doyle

Proposal for a refundable tax credit equal to 30% of the cost of investments in machinery and equipment used to manufacture or process key clean technologies, and extract, process or recycle certain critical minerals essential to clean technology supply chains.

($1 = 1.3599 Canadian dollars)

Latest comments

So fairy tales are real eh!? Print and print Im sure the rich will pay for it all by 1% extra on share buybacks
Haven’t been impressed with to many Liberal budgets but actually like this one. It covers a lot of ground and this time they’re bringing in money on top of spending instead of just increasing the deficit. You can see th e NDP hand in this, credit for food inflation, dental etc: Yep not bad.
i am pretty sure we will be paying for all the rebates
We pay for everything anyway through tax on tax. At least we don’t have inheritance tax like the UK. Yep, wait till they die then tax them to death again. Lol
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.