Federal Budget 2023 Canada Tax Increase

Budget 2023: Tax Measures and Proposed Amendments

Detailed Information on Proposed Tax Measures

Annex Releases Details

The recently released annex to the federal budget provides comprehensive information on proposed tax measures outlined in the document. It includes notices of Ways and Means Motions seeking to amend the Income Tax Act, Excise Tax Act, Excise Act 2001, and other pertinent legislation. Additionally, the annex presents draft amendments to various regulations.

Key Principles: Strong Middle Class, Affordable Economy, Healthy Future

Government's Economic Plan

The 2023 federal budget represents the government's plan to foster a robust, sustainable, and secure Canadian economy for all citizens. Budget 2023 builds upon previous progress, aiming to support a strong middle class, an affordable economy, and a healthy future.

Targeted Inflation Relief: Grocery Rebate

Support for Canadians in Need

To address the challenges of inflation, Budget 2023 introduces the Grocery Rebate, providing targeted relief to over 11 million Canadians and families facing financial hardship. Eligible couples with children may receive up to $467, single Canadians without children up to $234, and seniors an average of $225.

Addressing Tax Fairness: AMT Rate Increase and Limits on Tax Preferences

Ensuring Fair Contributions

To ensure that the wealthiest Canadians contribute their fair share to the tax system, the budget proposes legislative amendments to raise the Alternative Minimum Tax (AMT) rate from 15% to 20.5%. Additionally, it seeks to limit the excessive use of tax preferences. These amendments are projected to generate approximately $30 billion in revenue over the next five years.

Tax Relief for Essential Goods: Grocery Rebate

Increased GST Credit for January 2023

The budget enhances the maximum Goods and Services Tax Credit (GSTC) amount for January 2023. Known as the Grocery Rebate, eligible individuals will receive double the regular GSTC amount for that month, providing additional support during a period of heightened inflation.