OTTAWA (Reuters) – Below are some of the key proposals and takeaways from the annual fall economic statement unveiled by Canada’s Finance Minister Chrystia Freeland on Thursday. [nO8N2N5027
TAX ON SHARE BUYBACKS
To introduce a 2% tax on the net value of all types of share buybacks by public companies in Canada, similar to a recent measure introduced in the United States. The details of this new tax will be announced in the 2023 budget, and the tax would come into force on January 1, 2024.
UKRAINE SOVEREIGNTY BOND
To issue a C$500 million ($364 million) Ukraine Sovereignty Bond with proceeds going to support the government and people of Ukraine.
INTEREST-FREE FEDERAL STUDENT AND APPRENTICE LOANS
To make all student loans and apprentice loans permanently interest-free, including those currently being repaid, starting in April.
LOWER CREDIT CARD TRANSACTION FEES FOR SMALL BUSINESS
To lower credit card transaction fees for small businesses by negotiating with payment card networks, financial institutions, payment processors, and businesses. To introduce legislation in 2023 to regulate credit card transaction fees if an agreement is not reached with the industry.
SUPPORT FOR LOW-EARNERS
To provide C$4 billion over six years starting 2022-23 to
low-income earners by way of advance payment.
SUPPORT FOR HURRICANE FIONA-IMPACTED PROVINCES
To set aside C$1 billion in 2022-23 to help provinces hit by Hurricane Fiona under the Disaster Financial Assistance Arrangements.
IMPROVING REGULATORY PROCESSES FOR MAJOR PROJECTS
To provide up to C$1.28 billion over six years, starting in 2022-23, to the Impact Assessment Agency of Canada, the Canada Energy Regulator, the Canadian Nuclear Safety Commission, and ten other federal departments. The funding is aimed to help the agencies to improve their response time while assessing the large number of environmental projects.
HOUSING
To table previously announced legislation to make housing more affordable, including a tax-free savings account for first-time home buyers, a tax credit for first-time home buyers and a tax on profits from flipping properties held for less than 12 months.
($1 = 1.3733 Canadian dollars)
(Reporting by Ismail Shakil in Ottawa; Editing by Denny Thomas)
