Major tax changes in Canada this year

 

Canadians are facing some tax hikes this year. From income tax to alcohol tax will increase sharply. A report released by the Canadian Taxpayers Federation in December highlights some key tax measures. The federal employment insurance rate and maximum annual insurable earnings rose to 1.66 percent this year from 1.63 percent. That is, from $61,500 in 2023 to $63,200 in 2024. This means that employees must pay a maximum annual premium of $1,049.12.

On April 1, 2024, the federal carbon tax will increase from $65 to $80 per ton. A carbon tax applies to all taxpayers in Canada except Quebec. With the increase in the carbon tax, the price of a liter of gas rose from 14.3 cents to 17.6 cents. Meanwhile, Canadians subject to a federal carbon tax began receiving carbon pricing rebates on Monday as part of the federal government's Climate Action Incentive Payment Program.

From April 1, 2024, the excise duty on beer, wine and spirits will increase by 4.7 percent due to the alcohol escalator tax.

Apart from these, the digital tax hike will also apply to Canadian citizens this year. The Canadian Taxpayers Federation says consumers could face higher rates due to a new three per cent digital services tax aimed at forcing giants like Amazon, Uber and Facebook to pay their fair share.