Canadians To See Substantial Tax Cuts Soon

May 4, 2011 Taxation in Canada

Steven HarperThe Conservative Party of Canada has won a majority position in parliament in the latest national general election, paving the way for a pro-business policies by the government, and promising tax cuts in the near future.

Following the Canadian general election on May 2nd, Stephen Harper has been confirmed as the Prime Minister of the country for the third time, and as the leader of the now majority ruling Conservative Party. Holding the majority position in parliament is a new advantageous reality for the Conservatives, and the country’s new political make-up is set to lead to several changes to the tax system, and a more business orientate policy outlook for the government.

The Conservative Party has been a long-time supporter of lowering the country’s corporate tax rate, but its efforts were repeatedly hampered by opposition parties. Following the announcement of the election results, Steven Harper suggested that with the party’s new majority standing, the lowered tax rate could be instated soon. It is expected that any such move will see the rate dropped from 16.5 percent to 15 percent, with the intention of allowing Canadian companies to remain competitive on the international market.

The Prime Minister has also promised to instate several personal and family tax breaks, starting with an effective lowering of overall tax liabilities for couples with children. However, such measure will be delayed until the government is able to adequately address its current budget deficit.

The Canadian Conservative Party-led government is also looking set to increase support for the country’s energy and resource extraction sectors. In a speech made in Calgary on May 3rd Steven Harper suggested that transport and energy companies operating in western Canada will greatly benefit from the Party’s business policies, paving way for potential energy export expansions into Asia. He added that there is no current plans for the Canadian government to instate a carbon emissions trading scheme, or cut back on the government subsidies and tax breaks currently enjoyed by the energy sector, as was campaigned for by opposition parties. The currently offered government subsidies amount to approximately CAD 2.2 billion per annum.

Photo by SixFourG