Politicians across Canada are calling on the federal government to reverse capital gains changes they say unfairly target farms.
Alberta Agriculture Minister and Highwood MLA RJ Sigurdson joined half-a-dozen of his counterparts to say that proposed tax changes will “inadvertently, disproportionately and unfairly target producers and their succession plans.”
In an Aug. 9 press release from the Government of Saskatchewan, shared on Sigurdson's X account, the Alberta agriculture minister and those from Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia and Prince Edward Island asked that proposed changes to the capital gains tax impacting agriculture or the food industry be reversed.
Family farms will be impacted when it comes to succession planning or if farmers and ranchers sell assets to help finance retirement, the press release said.
The proposed changes will threaten farmers' livelihoods and the viability of Canada's agricultural sector, Sigurdson said in the press release.
"These changes will unfairly burden our farmers and ranchers, who are already facing significant challenges,” he said.
Changes to capital gains taxation were announced by the federal government as part of Budget 2024.
The capital gains inclusion rate was increased from one-half to two-thirds for capital gains of more than $250,000 per year, and on all capital gains for corporations and most types of trusts.
The changes do not apply to home sales, which will remain tax free. There are no exemptions for other assets and the federal government said that is to ensure fairness across different sectors and to prevent preferential treatment.
