WINNERS & LOSERS
OTTAWA • With a variety of fiscal and policy measures announced in the federal budget, here's a look at some of the winners and losers:
WINNER: SMALL BUSINESS
Carbon tax rebates for small businesses are coming, five years after consumers began receiving their share. The measure is “a big relief,” says Dan Kelly of the Canadian Federation of Independent Business. The budget says as many as 600,000 firms would be eligible for a share of $2.5 billion.
LOSER: TOBACCO
The federal government will collect an additional $4 per carton of 200 cigarettes starting Wednesday, on top of the $1.49 added on April 1 as part of an automatic inflation adjustment. For vaping, singled out in the budget as a public-health issue affecting younger Canadians “enticed by appealing marketing,” vaping excise duty rates will increase by between 12 and 24 cents per typical vape pod. Together, the measures should generate about $1.7 billion in the next five years.
WINNER (EVENTUALLY): FINTECH COMPANIES
Long-promised details about a framework for open banking — a system that allows consumers to easily access their financial data across multiple institutions, apps and services — were revealed in Wednesday's budget, though the specifics are reserved for legislation to be tabled before the end of the year. It names the Financial Consumer Agency of Canada to oversee and enforce the system.
WINNER: THE ENVIRONMENT
More than $900 million over six years for greener homes and energy efficiency programs.
Ottawa also plans a national flood insurance program by 2025, providing $15 million to Canada Mortgage and Housing Corp. And it is creating new parks and wildlife preserves, including in B.C., P.E.I. and Windsor, Ont.
For businesses:
❚ A 10 per cent tax credit for the cost of buildings used for key parts of the EV supply chain over the next 10 years;
❚ A 15 per cent tax credit over the same period for eligible investments in new equipment or refurbishments for clean electricity.
LOSER: CANADIAN PENSION FUNDS
A debate has emerged about whether the country's largest pension funds should invest more in Canada. The government says it will create a working group led by the finance minister and former Bank of Canada head Stephen Poloz to explore ways to spur spending in Canada, but it doesn't appear to have a lot of teeth.
WINNER: STUDENTS
The government will spend $48 million over four years and $15.8 million thereafter to forgive the loans of early childhood educators. Another $253.8 million over four years, plus $84.3 million a year thereafter, will go to loan forgiveness for a host of health and education workers, including hygienists, pharmacists, teachers and social workers.