Trudeau's Tax Turmoil: Capital Gains Measure in Limbo

Canadian Prime Minister Justin Trudeau's suspension of parliament has placed the status of a proposed capital gains tax in question. The government has been collecting the tax since June, but uncertainty looms over its future as Trudeau steps down and parliament remains prorogued until March 24.

Prime Minister Justin Trudeau's decision to suspend parliament has left the future of a proposed capital gains tax hanging in the balance. The finance ministry confirmed this week that they will continue to collect the modified tax despite the legislative uncertainty.

This suspension has delayed numerous bills, including the measure to increase the capital gains tax to two-thirds for certain individuals and businesses. The proposal, which was expected to generate C$19.4 billion for affordable housing projects over five years, now faces an unclear future as Trudeau prepares to step down.

Analysts warn that failing to pass the bill could exacerbate Canada's budget deficit. As the situation unfolds, the Canada Revenue Agency will continue to administer the tax according to existing guidelines unless directed otherwise by Parliament upon its return.

(With inputs from agencies.)