Canada Cuts Taxes, Raises Revenues

November 13, 2014 Taxation in Canada

Canada TaxOTTAWA – Despite having recently cut tax and raised tax benefits for individuals, the government of Canada still expects to enjoy a budgetary surplus by the end of next year.

On November 12th the Department of Finance of Canada issued its annual Update of Economic and Fiscal Projections report, detailing the current projections for tax collections in the next 12 months, and showing that the government is currently on track to see a budgetary surplus.

According to the Department of Finance, tax collections in the near-term will be buoyant enough to see a budgetary surplus of approximately CAD 1.9 billion by the end of the 2015 calendar year.

In the report it was emphasized that the collection of tax revenues in Canada are continuing to rise “…in comparison to difficult economic situations faced by other countries,” and this positive development can be attributed to the government’s approach to taxation and job creation.

It was also noted that even though the government will soon see a budgetary surplus, the recently implemented cuts to personal taxes have now lowered the overall federal tax burden faced by taxpayers to the lowest level in 50 years, and will save at least CAD 27 billion in tax payments for taxpayers in Canada over the next 5 years.