A Canadian flag flies in front of the Peace Tower on Parliament Hill in Ottawa, Ontario, Canada, March 22, 2017. REUTERS / Chris Wattie / File Photo
Canada to present $ 1 billion budget for pandemic recovery measures as COVID-19 infections increase, C $ 2 billion ($ 1.6 billion) for child care nationwide and new property taxes of luxury.
Liberal Prime Minister Justin Trudeau’s first budget in two years will also allocate C $ 12 billion ($ 9.6 billion) to extend pay and rent subsidy programs through the fall, the Toronto Star reported on Sunday.
Finance Minister Chrystia Freeland is due to present the budget at around 4 pm (2000 GMT).
The document promises more than C $ 2 billion as a “starting point” for a national child care program, said Canadian Broadcasting Corp., adding that the 2020-2021 federal deficit has reached below C $ 400 billion.
In November, the government forecast a deficit of C $ 381.6 billion, which would be the highest level of World War II. [https://tmsnrt.rs/3wSJPcm]
The budget will also include a luxury tax, starting in 2022, for new cars and private aircraft, valued at more than C $ 100,000 ($ 79,970) and boats worth more than C $ 250,000, family government sources told Reuters with the document. L1N2MB0LV
Starting in July, there will be a sales tax for online platforms and e-commerce warehouses and a tax for digital services for Web giants such as Google (GOOGL.O) and Facebook Inc (FB.O) from Alphabet Inc from 2022.
Freeland promised up to $ 100 billion in November as an incentive for three years to “restart” an economic recovery during what is likely to be an election year, and the government has so far not withdrawn from that commitment. Read more
Environment Minister Jonathan Wilkinson, speaking with the CBC, confirmed that the budget will be “ambitious” and that the government will “invest in jobs and growth to rebuild this economy”, although he added that there will be “fiscal fences” to spend a “sustainable track”.
Amid a third wave of infections, Ontario, Canada’s most populous province, announced new public health restrictions on Friday, including closing the province’s borders for non-essential domestic travel. Read more
Canada has stepped up its vaccination campaign, but still has a smaller percentage of its population inoculated than dozens of other countries, including the United States and the United Kingdom.
($ 1 = $ 1.2514)
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