Conservatives have pledged to expand the annual contribution limit that Canadians can make to tax-free savings accounts (TFSAs) for $5,000 if investments are made in Canadian companies.
Conservative leader Pierre Polyable said in a statement that he wanted to reward “patriotic Canadians who invest in Canadian businesses and help the economy grow.”
Tories noted that taxation already defines what constitutes Canadian investment. If elected to form a government, they will create definitions of financial institutions and advisors to identify which types of investments can be added to the “Canada First TFSA Top-Up.”
Canadians can currently donate up to $7,000 a year through TFSA. This allows investments to be tax-free. Unlike registered Retirement Savings Plan (RRSP) accounts, there is nothing to owes the government when the money is taken out.
According to the latest available statistics from the Canada Revenue Agency, nearly 18 million Canadians had TFSA in the year of contributions in 2022.
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“Canada’s first TFSA is to boost Canadian businesses and unleash the economy, so that (US President) Trump can rise from his position of strength,” Polyeble said.
Poilierbre told reporters on the campaign trail on March 26 that Trump sold all foreign investments after he launched tariffs in Canada.
“After President Trump began to threaten our economy, I sold my investments in the foreign economy and now I invested in Canadian stocks and Canadian companies. I brought the money back to this country,” he said.
Poilievre’s TFSA announcement follows other tax commitments this week. Conservatives have pledged to cut taxes for older people, earning revenue with a tax-free up to $34,000, earning an increase of $10,000. Poilievre has also pledged to reduce the tax rate for the lowest income class from 15% to 12.75%.
Tory also said it would remove GST of the new home, which costs less than $1.3 million.
Liberal leader Mark Carney also said he would pledge tax cuts to around 1% for the lowest income class and remove GSTs from new homes that are under $1 million.
NDP leader Jagmeet Singh said this week that he would raise the basic federal individual amount to $19,500, and also offered tax regulations. He also said he would redesign the capital gains tax hike to target the “richest” and remove GST for items considered to be Internet and heating costs.
The party leader has focused on economic measures to support Canadians amid the turbulence sparked by the Trump administration.
On March 26th, Carney announced a $2 billion strategic fund to support the Canadian auto industry and its workers.
Later that day, the White House announced a 25% tariff coming April 2nd on cars and auto parts that are not made in the US. The automotive industry is highly integrated across borders, with one part moving several times before the final product is announced.
Poilliebre condemned the “unjust” tariffs, saying Canada should retaliate with measures to maximize its impact on the US and minimize its impact on Canada.
Ottawa has already retaliated against nearly $60 billion worth of US goods after Trump placed two sets of tariffs in Canada.
