Finance Minister Champagne says upcoming budget will simplify tax rules for small and medium businesses
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Finance Minister Francois-Philippe Champagne previewed the federal budget, saying it will address tax complexity for small and medium-sized firms and include a productivity deduction to encourage investment.
Finance Minister Francois-Philippe Champagne told business leaders that Thursday’s federal budget will aim to make the tax system easier for Canada’s small- and medium-sized enterprises. Speaking at a Canadian Club Toronto breakfast, he said the government intends to simplify rules that often require a tax adviser for smaller firms.
"I think you will see in this budget a journey to fixing a number of things, to make things more simple, to simplify the life of small and medium-sized businesses," Champagne said in a fireside chat with CBC News journalist Peter Armstrong.
The Canadian Federation of Independent Business has urged Ottawa to lower the small-business tax rate and address gaps in the federal tariff-relief regime. CFIB executive vice-president of advocacy Corinne Pohlmann said small firms want policies that enable reinvestment and future planning rather than direct handouts.
Champagne did not provide detailed proposals but indicated that the budget could include changes to the Scientific Research and Experimental Development program and will feature a productivity deduction that allows firms to write off the full cost of eligible capital investments in the first year. The measure, announced in September, is projected to cost $36 billion over five years.
"It’s our government’s signal to Canadians to use their capital right here in Canada, to invest in new machinery and technology, to expand their enterprises and to support a Canadian economy that nurtures and develops more workers and innovators," the minister said.
When asked about a proposed sovereign-wealth fund and private-investment options for airports, Champagne declined to comment. He also brushed off a question on how renewed U.S. trade talks might affect spending, emphasizing that the plan focuses on Canada’s own growth model.