Conservative leader Pierre Poillieb vows that if he becomes prime minister, individuals and businesses selling assets reinvest Canadian revenues, he will not pay capital gains tax. The proposal will allow companies reinvesting in active Canadian companies to postpone their capital gains tax, according to a March 30 Conservative press release.
The release said investors will not be taxed later.
Called Canada’s first reinvestment tax cut, the proposed tax cut will be available at capital gains reinvested over the 18 months between July 1, 2025 and December 31, 2026.
Poilievre said the tax credits will act as “rocket fuel” for the Canadian economy and encourage investors to “reinvest and build here.”
“Current capital gains are stacking taxes on old assets because selling them enforces a big bill,” the Tory leader said in a statement. “So they don’t sell or reinvest in home construction, small businesses, technology, manufacturing, etc.
“If we allow tax-free reinvestment, we unlock billions of dollars and soon start buildings, employment, investments and growth,” he added.
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In a video posted to social media the same day, Poilliebre said he would consider making it permanent if his policies trigger a “economic boom” as expected. Additionally, he has promised small business owners and farmers that the current lifetime capital gate exemption will “not change.” This means that you can “benefit from both this new postponement and the existing exemption.”
The conservative leader also touted that his proposal “will still get that distribution, but it will grow from then on.”
“The additional investments arising from this policy create more jobs and growth and compensate for much of the government’s lost short-term revenue,” he said.
“Economic fortress”
Poilievre’s latest announcement is an extension of what he vowed in January when he said he would abolish the capital gains tax hike if the party formed a government.
Ottawa proposed a budget 2024 hike last April under the helm of Prime Minister Justin Trudeau. At the time, individuals were paying taxes only half of the total capital gains they earned in the year from the sale of assets. Under the proposal, a 50% inclusion rate applies only to the first $250,000 of capital gains, but two-thirds of capital gains above $250,000 are taxable. For Canadian companies, they are taxed on two-thirds of total capital gains, up from half.
The measure, proposed to take effect on June 25, 2024, was passed in a way and measure movement in the House of Representatives in June 2024, but was not officially implemented through the law. Additionally, there was strong resistance from businesses, economists and conservatives, warning that the measure could drive investors away from Canada.
On March 21, a few days before calling the federal election, liberal leader Mark Carney announced that his government would cancel the planned hike.
The gusts of Poilievre’s recent announcement come when the Liberal Party regained its position in the polls. Since Trudeau announced he would resign amid a trade dispute with the US, Tories’ 20-point lead has all disappeared.
At a campaign stop in North York, Ontario on March 30, Polierebre was asked by a reporter if the campaign should be focused more clearly on the US tariff threat from US President Donald Trump’s administration.
Poilliebre did not directly address the question, but said his proposed reinvestment tax cut would bring billions of dollars to the Canadian economy.
NDP focuses on housing
NDP leader Jagmeet Singh stopped by Port Moody in BC on March 30 to promote the party’s plan to offer first-time home buyers “publicly public mortgages at low interest rates.”
NDP leader Jagmeet Singh announces the home during the suspension of the federal election campaign in Port Moody, BC on March 30, 2025. Canadian Press/Muski Christine
Singh said the proposed plan would work by “unlocking the financial power” of Canada’s Mortgage and Housing Corporation, so the Federal Crown will provide long-term, low-interest mortgages to help workers and middle-class families buy their first homes.
“If you cut just 0.5% on a typical mortgage, for example, you can save around $9,500 for your family over five years. People can save for groceries, childcare or the future,” NDP leaders said in a statement.
“We are here to support the interests of people,” Singh added.
Liberal leader Mark Kearney is not scheduled for a public event on Sunday.
Noé Chartier and Reuters contributed to this report.
