New taxes on banks and life insurers will generate $5.3 billion over five years: PBOOTTAWA — Proposed new federal taxes on some financial institutions could generate $5.3 billion over the next five years, the parliamentary budget officer estimated in two new reports issued Thursday. The documents calculated the expected revenues from the Canada Recovery Dividend and a proposed permanent increase to corporate taxes on banks and life insurance groups. The PBO said the dividend — a one-time 15 per cent windfall tax on banks and life insurers profits made during the pandemic — will generate $3 billion. The PBO report said increasing that rate from 15 per cent to 16 .5 per cent would generate $2.3 billion over the next five years. However the initial dividend proposed was to apply the 15 per cent windfall tax only on 2021 Canadian-based income instead of the average income over 2020 and 2021.

Source: CBC News September 23, 2022 07:22 UTC