While the government studies the possibility of imitating Ottawa by increasing the capital gains tax, the Minister of the Economy and Energy, Pierre Fitzgibbon, insisted Thursday on the importance of returning to balance budget and maintaining a tax system harmonized with that of the federal government.
In its budget tabled this week, the federal government announced an increase in the tax on capital gains for individuals and corporations, the height of which would increase from 50% to 66% on sums over $250,000.
Mr Fitzgibbon said his government must analyze its options in light of its deficit financial situation. He recalled that his colleague, Finance Minister Eric Girard, will soon meet representatives of rating agencies to whom he will have to explain what he would do if he gave up imitating Ottawa.
“There is financial rigor to consider before saying that we are not harmonizing,” declared the minister as part of the study of his ministry’s budgetary appropriations in parliamentary committee.
Mr. Fitzgibbon also recalled that historically, the government has harmonized this taxation with that of the federal government. According to him, proceeding otherwise could be a source of administrative complication given that Quebec taxpayers produce two tax reports, one for Ottawa, one for Quebec.
A few minutes earlier, Mr. Fitzgibbon showed himself open to creating an aid program for businesses if the Quebec government ever imitates Ottawa and this decision has an impact.
Mr. Girard said he would make a decision on the matter this week.
More details will follow.
To watch on video