Conservative Leader Pierre Poilievre pledges that if he becomes prime minister, individuals and businesses selling assets won’t pay capital gains tax if they reinvest the proceeds in Canada. The proposal would allow companies that reinvest in active Canadian businesses to defer any capital gains tax, according to a press release by the Conservative Party of Canada on March 30.
The release noted that investors won’t be taxed until later, when they either cash out or move the money out of the country.
Dubbed as the Canada First Reinvestment Tax Cut, the proposed tax break will be available on any capital gains reinvested during the 18-month period between July 1, 2025, and Dec. 31, 2026.
Poilievre says the tax break will serve as “rocket fuel” for the Canadian economy and incentivize investors to “reinvest and build things here.”
“The current capital gains tax locks-up investment in old assets, because selling them would force a big bill,” said the Tory leader in a statement. “So, they do not sell and reinvest in homebuilding, small businesses, technology, manufacturing and more.
“Allowing reinvestments without tax will unlock billions to immediately begin building, hiring, investing and growing,” he added.
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In a video posted on social media on the same day, Poilievre said should his policy cause an “economic boom” as he expected, he would consider making it permanent. In addition, he promised small business owners and farmers that their current lifetime capital gains exemption “will remain unchanged,” which means “they can benefit from both this new deferral and their existing exemption.”
The Conservative leader also touted that his proposal will see that the “government will still get its share, but later and bigger.”
“The extra investment that will result from this policy will create more jobs and growth, making up for much of the government’s short-term lost revenue,” he said.
‘Economic Fortress’
Poilievre’s latest announcement is an extension of what he pledged in January, when he said he would scrap the capital gains tax hike if his party forms government.
Ottawa proposed that hike in Budget 2024 last April, under the helm of Prime Minister Justin Trudeau. At the time, individuals only paid tax on half of the total capital gains earned in the year from selling their assets. Under the proposal, that 50 percent inclusion rate would apply only to people’s first $250,000 in capital gains, while two-thirds of any capital gains above $250,000 would be taxable. For Canadian companies, they would be taxed on two-thirds of their total capital gains, up from half.
The measure, proposed to take effect on June 25, 2024, was passed via a ways and means motion in the House of Commons in June 2024 but was not officially implemented through legislation. In addition, it was met with strong resistance from businesses, economists and the Conservatives, warning that the measures could chase investors away from Canada.
On March 21, just days before calling the federal election, Liberal Leader Mark Carney announced that his government will cancel the planned hike.
Poilievre’s recent flurry of announcements comes at a time when the Liberal Party has regained ground in the polls. The Tories’ 20-point lead in voters’ intention has all but vanished since Trudeau announced he would resign and amid the trade conflict with the United States.
During a campaign stop in North York, Ont., on March 30, Poilievre was asked by reporters whether he should focus his campaign more squarely on the U.S. tariff threats from the administration of U.S. President Donald Trump.
Poilievre did not directly address the question but said his proposed reinvestment tax cut would bring billions of dollars into the Canadian economy that would in turn “create an economic fortress against the unjustified and unfair threats of Donald Trump.”
NDP Focuses on Housing
NDP Leader Jagmeet Singh stopped by Port Moody, B.C., on March 30 to promote his party’s plan to offer “low-interest, public-backed mortgages” for first-time homebuyers.
NDP Leader Jagmeet Singh makes an announcement on housing during a federal election campaign stop in Port Moody, B.C., on March 30, 2025. The Canadian Press/Christinne Muschi
Singh said the proposed plan will work by “unlocking the financial power” of the Canada Mortgage and Housing Corporation, such that the federal Crown corporation will offer long-term, low-interest mortgages to help working- and middle-class families to afford their first home.
“For example, a reduction of just 0.5% on a typical mortgage would save a family around $9,500 over five years—money people could use for groceries, childcare, or saving for their future,” said the NDP leader in a statement.
“We’re here to support people over profits,” Singh added.
Liberal Leader Mark Carney has no public events scheduled on Sunday.
Noé Chartier and Reuters contributed to this report.
