On March 28, 2023, Deputy Prime Minister and Minister of Finance Chrystia Freeland released Canada’s 2023 Budget (Budget 2023).
Budget 2023 prioritizes four key initiatives: (i) strengthening the middle class, (ii) making life more affordable, (iii) increasing accessibility to public health, and (iv) fostering a more environmentally sustainable economy.
From a tax perspective, Budget 2023 revealed a continued effort to fine-tune and implement previously announced measures. While there were no business or personal income tax rate increases, clean energy continues to be the focus and there is a clear directive to combat abusive tax avoidance schemes both domestically and internationally. Further, the proposed changes focus on supporting the middle class through inflationary times, namely by ensuring that the wealthiest Canadians pay their fair share of taxes.
This tax alert summarizes the personal and business income tax measures as well as indirect tax measures in Budget 2023 relevant to the middle market.
Looking for industry-specific takeaways? View our 2023 Canada Federal Budget: Industry Highlights