Canada Defers Capital Gains Tax Overhaul Amid Political Stalemate

The Canadian government has postponed implementing controversial changes to the capital gains tax until January next year. The proposal to increase the tax on capital gains to two-thirds for businesses and high-value individuals was met with resistance and stymied by political issues in Parliament.

Canada's government announced on Friday a deferment in implementing contentious changes to the capital gains tax, rescheduling them for January 1 next year.

Individuals and businesses affected by the proposed tax regime are worried about ongoing payments, as the measure failed to secure parliamentary approval due to repeated political hurdles, including Prime Minister Justin Trudeau's suspension of Parliament.

The proposal aimed to increase the taxable proportion of capital gains to two-thirds, impacting those exceeding C$250,000 in capital gains, but has faced strong opposition from economic sectors fearing investor flight.

(With inputs from agencies.)