Capital Gains Inclusion Rate
Res #: 17-24M
Number: 17
Year: 2024
Midterm: Yes
Expired: No
Responses Received: Yes
Departments: Saskatchewan Ministry of Finance
WHEREAS in the 2024 Federal Budget tabled April 16,2024, the government announced changes to the capital gains inclusion rate from one half to two thirds for individuals, corporations and trusts.
WHEREAS on June 10, 2024, the government tabled legislation that brings these changes to Parliament on a stand-alone basis and not part of any other budget legislation.
WHEREAS an increase in the capital gains inclusion rate from one half of the capital gain to two thirds of the capital gain is effective for gains realized on or after June 25, 2024 and applies to the realized capital gain annual threshold of gains over $250,000.
WHEREAS the changes to the capital gains inclusion rate raises a concern that it could lead to a reduction in productivity, investing and innovation in the agricultural sector. This change will disincentivize investors and entrepreneurship in this province and the impact will be felt across Canada.
BE IT RESOLVED that SARM lobby the federal government to reconsider and rescind the changes to the capital gains inclusion rate that came into effect on June 25, 2024.
BE IT FURTHER RESOLVED that SARM lobby the federal government to engage in a thorough review of the long-term economic impacts of the proposed changes and consider alternative options that could help achieve their intended tax revenue goals without adversely affecting the Canadian economy and the agriculture industry.
Responses From: Prime Minister of Canada
March 21, 2025
Today, Prime Minister Carney announced that the Government of Canada will cancel the proposed hike in the capital gains inclusion rate. Cancelling the increase of the capital gains inclusion rate is a recognition of the vital role that builders and small businesses play in shaping Canada’s future. It will strengthen Canada’s ability to catalyze the enormous private investment needed to create jobs and opportunities and to build a stronger future.
In addition, the government will maintain the increase in the Lifetime Capital Gains Exemption limit to $1,250,000 on the sale of small business shares and farming and fishing property. The government will introduce legislation affecting the increase in the Lifetime Capital Gains Exemption limit in due course.
The new government is focused on catalyzing investment, incentivizing builders for taking risks, and rewarding them when they succeed. It is time to build.
Quote
“Canada is a country of builders. Cancelling the hike in capital gains tax will catalyze investment across our communities and incentivize builders, innovators, and entrepreneurs to grow their businesses in Canada, creating more higher paying jobs. It’s time to build one Canadian economy – the strongest economy in the G7.”
