Federal budget set to include surtax on big banks' pandemic profits

Thursday's federal budget will include a surtax on financial institutions that have made huge profits during the pandemic, CTV News has learned. In being asked to share their wealth, the big chartered banks and major insurance companies are bracing for the new targeted measure that is expected to increase their corporate income taxes. How much more they will have to pay, is set to be detailed in the budget.

In being asked to share their wealth, the big chartered banks and major insurance companies are bracing for the new targeted measure that is expected to increase their corporate income taxes. How much more they will have to pay, is set to be detailed in the budget.

In their 2021 election platform, the Liberals vowed to slap a three per cent surtax on banks and insurers who earned more than $1 billion per year. 

Moving forward “in the near term on tax changes on financial institutions who have made strong profits during the pandemic,” was cemented in the Liberal-NDP deal inked a few weeks ago, stemming from both parties’ commitments to go after pandemic profiteers.

In the last election the Liberals pledged that they would raise income taxes on the “largest, most profitable banks and insurance companies,” and bring forward a “temporary Canada Recovery Dividend” these companies would have to pay.