Conservative Leader Pierre Poilievre holds a press conference at Petro Plastics Corporation Ltd. in Toronto on March 30.Laura Proctor/The Canadian Press
Conservative Leader Pierre Poilievre says if his party forms government, a person or business selling an asset would not have to pay capital gains tax if the proceeds are reinvested in Canada.
That means investors could defer paying any capital gains tax until they cash out or move their investments abroad.
Mr. Poilievre criticized what he said is Canada’s lack of business investments in tools, machines and technology relative to the U.S., which he said has made Canada less competitive.
“As a result, our wages are down, our people cannot pay their bills, and we are more dependent on the Americans than ever before. One of the reasons is our very high capital gains tax, which punishes people for selling an old investment and reinvesting in a new one,” he said.
With tariffs top-of-mind for voters, federal leaders are competing on who would best protect the economy from U.S. President Donald Trump and the trade war he launched against Canada.
Mr. Poilievre’s Conservatives have lost ground in public opinion polling to the Liberals, fuelling turmoil inside his campaign as insiders call for a greater focus on U.S. tariffs.
Mr. Poilievre did not directly address those campaign tensions when asked about them during a news conference in Toronto on Sunday.
“Today, we are standing up to the Americans with a Canada-first reinvestment tax cut that will bring tens, if not hundreds of billions of dollars of investment into our economy to create an economic fortress against the unjustified and unfair threats of Donald Trump,” Mr. Poilievre said.
The Conservatives say the tax break would come into effect July 1 and remain in place until the end of 2026, though Mr. Poilievre suggested in a video that he may make it permanent if it generates an “economic boom” as large as he expects.
The Conservatives say the tax break would cost $10.5-billion in total over the 2025-2026 and 2026-2027 fiscal years, though Mr. Poilievre argues in his video that the “government will still get its share, but later and bigger.”
The Council of Canadian Innovators, which represents domestic tech companies, welcomed the Conservatives’ capital gains proposal in a statement on Sunday.
“We have long advocated for policies that enhance access to capital for high-potential Canadian firms,” said Benjamin Bergen, the council’s president.
“The proposed Canada First Reinvestment Tax Cut aligns with that broader objective by aiming to encourage domestic reinvestment and support business growth.”
The government of then-prime minister Justin Trudeau proposed making two-thirds of capital gains taxable for businesses, as well as capital gains above $250,000 earned by individuals.
However, Liberal Leader Mark Carney cancelled the planned hike before calling a federal election.
On Friday, Mr. Poilievre announced he would increase the annual contribution limit to tax-free savings accounts by $5,000, but only if that extra money is invested in Canadian companies.
With a report from Dave McGinn in Toronto