The increase in capital gains tax will reduce the budget deficit from 11 to 10 billion this year, Finance Minister Eric Girard said on Tuesday.
Mr. Girard explained his choice to imitate the federal government’s decision to increase the taxable proportion of capital gains.
In parliamentary committee, the minister explained that he had analyzed the impact of this decision last week.
According to Mr. Girard, the decision to maintain a lower rate in Quebec would not have made it possible to attract significant additional investments.
“Would there have been marginal investments that would be located in Quebec rather than in the other provinces, the answer is no,” he said.
According to the minister, an additional sum of 3 billion will be received thanks to this increase, including 1 billion this year, which will reduce the deficit of 11 billion declared in the March budget.
The Liberal finance spokesperson, MP Frédéric Beauchemin, for his part maintained that this decision would have an impact on productivity.
“There has been no analysis of the Freeland-CAQ tax on productivity,” he lamented.
The MP for Québec solidaire, Haroun Bouazzi affirmed that the impact of this increase was limited since 1% of taxpayers pay 50% of the tax on capital gains.
More details will follow.
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