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 […]
Factbox-Canada budget 2023-24: key measures and proposals
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 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
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)
(Compiled by Ismail Shakil; Editing by Steve Scherer and Josie Kao)