Conservatives have pledged to stretch the yearly contribution limit that Canadians can make to their tax-free savings account (TFSA) by $5,000—if the investments are made in Canadian companies.
Conservative Leader Pierre Poilievre said in a statement he wants to reward “patriotic Canadians who invest in Canadian businesses and help grow our economy.”
The Tories noted the tax system already defines what constitutes a Canadian investment. If elected to form government, they would create a definition for financial institutions and advisors to identify which types of investments can be added in the “Canada First TFSA Top-Up.”
Canadians can currently contribute up to $7,000 annually in TFSAs, which allows investments to grow tax-free. Unlike a registered retirement savings plan (RRSP) account, there’s nothing owed to the government when money is taken out.
According to the latest available statistics from the Canada Revenue Agency, nearly 18 million Canadians had a TFSA in the 2022 contribution year.
“The Canada First TFSA is about boosting Canadian businesses, unleashing our economy, so that we can stand up to [U.S. President] Trump from a position of strength,” Poilievre said.
Poilievre told reporters on the campaign trail on March 26 that he sold all of his foreign investments after Trump initiated tariffs on Canada.
“After President Trump began threatening our economy, I sold my investments in foreign economies, and now I invest in Canadian stocks and Canadian companies. I brought my money home to this country,” he said.
Poilievre’s TFSA announcement follows other promises made this week around taxation. Conservatives have pledged to lower taxes for seniors, allowing them to earn revenues of up to $34,000 tax-free, an increase of $10,000. Poilievre has also promised to reduce the taxation rate for the lowest income bracket from 15 percent to 12.75 percent.
The Tories also said they will remove the GST on new homes under $1.3 million.
Liberal Leader Mark Carney has also promised a tax cut for the lowest income bracket, in the order of 1 percent, and said he would remove the GST on new homes under $1 million.
NDP Leader Jagmeet Singh also presented a tax plan this week, saying he would raise the basic federal personal amount to $19,500. He also said he would re-instate the capital gains tax hike to target the “wealthiest” and remove the GST on items deemed “essential” such as internet and heating bills.
Party leaders have been focused on economic measures to help Canadians amid turbulence caused by the Trump administration.
Carney on March 26 announced a $2 billion strategic fund to help the Canadian car industry and its workers.
Later that day, the White House announced a 25 percent tariff coming April 2 on cars and car components that are not made in the United States. The car industry is highly integrated across the border, with a single part moving from one side to the other several times before a final product comes out.
Poilievre condemned the “unjustified” tariffs and said Canada should retaliate with measures maximizing the impact on the United States and minimizing the impact on Canada.
Ottawa has already retaliated against U.S. goods worth nearly $60 billion after Trump placed two sets of tariffs on Canada.
