Recent changes to the federal capital gains tax are getting some criticism from the agriculture community.
The Member of Parliament for Grande Prairie-Mackenzie, Chris Warkentin, says family run farms transitioning from one generation to another are being impacted the most.
“The estimate is approximately a 30% increase in taxation. This comes on the heels of so many other tax changes and tax increases that the Liberals have imposed on farmers throughout Canada. This is just the latest attack that really will have a devastating impact on those planning for retirement and those trying to get into the farming industry for the first time.”
Ottawa now taxes two-thirds of capital gains – such as the profit made from selling a farm – up from the original inclusion rate of 50%.
Warkentin says his biggest concern is that this could lead to less family run farms.
“We know that once a farm has been sold outside of the family, that family will find it nearly impossible to ever get into farming again. We’ve seen a significant increase in the number of large, sometimes out of country, ag businesses buying out canadian farmland and the manufacturing sector as it relates to food in Canada.”
Warkentin also says that this is another increase on taxes for farmers which is resulting in higher food prices.
You can listen to the full interview below.
– Kyle Moore, Trending 55 Newsroom
