Conservatives promise to defer tax on capital gains to boost domestic investment

Conservative Leader Pierre Poilievre greets aircraft mechanics and supporters during a press conference at Fast Air in Winnipeg on Saturday, March 29, 2025. CANADIAN PRESS/John Woods

NORTH YORK, ONT. — Conservative Leader Pierre Poilievre is pitching a new tax measure he says would act like “rocket fuel” for the Canadian economy -- a deferral of tax on capital gains.

At a campaign stop Sunday at a plastics manufacturing plant in the Toronto suburb of North York, Poilievre pledged to allow Canadians to defer capital gains tax if they reinvest those earnings in Canada.

“Think of companies that have invested abroad. This would allow them to sell those foreign investments and bring it home tax-free,” Poilievre told a press conference.

“At the end of the day, this will mean more investment. This will be like economic rocket fuel for Canada to put us in liftoff. We will soar above the Americans.”

The promised tax deferral window would be open for 18 months beginning in July. The deferred tax would be recouped by the federal government once investors cash out or move the money outside of Canada.

The party estimates the policy would cost $5 billion in its first year and $5.5 billion in 2026-27.

Capital gains are incurred when an individual or business sells an asset, like a stock or piece of property. Right now, Canadians must pay capital gains on 50 per cent of those earnings -- the inclusion rate.

The Liberal government had planned to increase the inclusion rate to two-thirds, but Prime Minister Mark Carney announced earlier this month the government was cancelling the change.

Taking questions from selected reporters Sunday, Poilievre brushed off suggestions of campaign turmoil as he pitched his party as the best choice to stand up to U.S. President Donald Trump.

On Friday and Saturday, several media outlets -- including the Globe and Mail, Global News and CBC News -- reported rising frustrations among Conservatives who want to see the campaign pivot away from attacks on the Liberal government and focus instead on how a Conservative government would handle Trump.

Earlier in the week, Ontario Premier Doug Ford’s campaign manager Kory Teneycke -- who was director of communications for former prime minister Stephen Harper -- told an Empire Club of Canada event that alarm bells should be going off inside Conservative headquarters and Poilievre needs to change course immediately to focus on Trump’s tariffs.

Internal Ontario Progressive Conservative polling put the Conservatives 15 points behind the Liberals in the province, where more than one-third of the seats in the House of Commons are being contested.

When asked Sunday about the reports of internal tension, Poilievre said the Conservatives were standing up to the Americans, and he claimed Trump wants the Liberals to remain in power.

“We know why -- because they will keep Canada weak, and keep our investment flowing out of this country to the U.S.”

Carney and Trump had their first telephone call on Friday. Trump described the exchange as “extremely productive” and later told reporters things were “going to work out very well between Canada and the United States.”

Carney too said the call was cordial.

Poilievre also added his voice to calls for incumbent Liberal candidate Paul Chiang to be disqualified from running.

Chiang apologized this week for comments he made in January about a Conservative candidate who had a bounty placed on him by Hong Kong police last December.

The Toronto Association for Democracy in China said in a news release that Chiang told Chinese-language newspaper Ming Pao at a news conference three months ago that everyone at the event could claim the bounty “if you bring him to Toronto’s Chinese consulate.”

Joe Tay, a Conservative candidate for Don Valley North, is among six overseas activists targeted by Hong Kong police. In December, the Hong Kong police announced a bounty of about $180,000 for information leading to his arrest.

On Sunday, Poilievre took aim at Carney for keeping Chiang on the ballot.

“I find it incredible that Mark Carney would allow someone to run for his party that called for a Canadian citizen to be handed over to a foreign government on a bounty. A foreign government that would almost certainly execute that Canadian citizen,” Poilievre said.

“And Mark Carney says he should stay on as a candidate. What does that say about whether Mark Carney would protect Canadians?”

Poilievre is travelling east this week for rallies in Fredericton on Monday and P.E.I. on Tuesday.

With files from Dylan Robertson and Catherine Morrison in Ottawa

This report by The Canadian Press was first published March 30, 2025.