(Bloomberg) — Conservative leader Pierre Poilievre is promising to scrap capital gains taxes if proceeds from an asset sale are reinvested in Canada.
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Businesses will also be able to defer any capital gains tax when they reinvest in active Canadian businesses, until investors cash out or move the money out of the country, according to a news release. The proposed break would be in place on reinvestments from July 2025 to the end of 2026.
The move comes as Canada is facing grave economic threats from a trade war with the US and defending against it by stoking domestic investments. Canadians will head to the polls in less than a month to pick a leader they deem most capable in dealing with US president Donald Trump.
Poilievre’s new tax incentive follows an earlier promise of an additional C$5,000 ($3,500) in tax-free savings room for Canadians who invest in local companies.
“Allowing reinvestments without tax will unlock billions to immediately begin building, hiring, investing and growing,” Poilievre said in a statement.
Poilievre is tied with Liberal leader Mark Carney at 39% in the most recent poll from Abacus Data.
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