{"id":121756,"date":"2021-04-18T22:42:40","date_gmt":"2021-04-18T22:42:40","guid":{"rendered":"https:\/\/precoinnews.com\/?p=121756"},"modified":"2021-04-18T22:42:40","modified_gmt":"2021-04-18T22:42:40","slug":"exclusive-canadas-budget-to-include-digital-and-luxury-levies-but-no-wealth-tax-sources","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/exclusive-canadas-budget-to-include-digital-and-luxury-levies-but-no-wealth-tax-sources\/","title":{"rendered":"Exclusive: Canada's budget to include digital and luxury levies, but no wealth tax – sources"},"content":{"rendered":"
OTTAWA (Reuters) – Canada\u2019s first budget in two years, to be presented to parliament on Monday, proposes a sales tax for online platforms and e-commerce warehouses, a digital services tax for Web giants and a luxury tax on items like yachts, government sources familiar with the document said.<\/p> It will not include a wealth tax, a levy sought by the opposition New Democrats. Liberal Prime Minister Justin Trudeau\u2019s budget will need the support of at least one opposition group to pass.<\/p>\n \u201cThe government is not moving forward with a wealth tax right now,\u201d a government source told Reuters. \u201cWe will be taking meaningful steps to close loopholes and tackle tax evasion, and ask those who are doing well right now to pay just a little bit more.\u201d<\/p>\n The budget will include a sales tax for online platforms and e-commerce warehouses starting from July, and a digital services tax on big Web companies starting from Jan. 1, 2022, both measures originally promised last year.<\/p>\n Online platforms include foreign-based vendors with no physical presence in Canada that sell products such as mobile apps and online video gaming. E-commerce warehousing is the storage of physical goods before they are sold online.<\/p>\n A luxury tax on new cars and private aircraft valued at more than C$100,000 ($79,970) and boats worth over C$250,000 will come into force next year if the budget is passed. RVs and snowmobiles would be exempt.<\/p>\n With the country\u2019s housing market booming, the government is proposing to tax vacant residential property owned by non-resident, non-Canadian owners from Jan. 1, 2022, sources said.<\/p>\n There will also be an effort to crack down on jurisdiction shopping by large, profitable companies that attempt to artificially lower their tax obligations in Canada, sources said.<\/p>\n From 2023, Canada will aim to limit the amount of excessive interest expenses that can be deducted from profit, although small businesses will be exempt.<\/p>\n In 2022 or 2023, the budget will propose limiting the ability of multinational companies to artificially construct arrangements among countries that end up lowering their tax rates in Canada.<\/p>\n The sources provided no details. Finance Minister Chrystia Freeland is due to present the budget on Monday at about 4 p.m. (2000 GMT).<\/p>\n Offering up her first budget since taking over as finance minister last year, Freeland has promised up to C$100 billion in stimulus over three years to \u201cjump-start\u201d an economic recovery in what is likely to be an election year.<\/p>\n Separately, the Toronto Star reported on Sunday that Canada would set aside C$12 billion in the budget to extend its main pandemic support measures as much of the country battles a virulent third wave of COVID-19 infections.<\/p>\n