Highlights of the Fall Economic Statement 2020

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The Federal Government released the Fall Economic Statement 2020 on November 30, 2020. Here are the highlights of the Fall Economic Statement 2020:

• The deficit is expected to reach $381.6 billion in 2020-21. In the next 2 years, the deficit is expected to fall to $121.2 billion in 2021-22 and to $50.7 billion in 2022-23.
• The Federal Government plans to invest up to $100 billion over three years to jumpstart our economic recovery once the virus in under control.
• The Federal Government will increase funding to provinces that are facing a year-over-year decline in non-resource revenues through the Fiscal Stabilization Program. The cap will be increased from $60 per person to $170 per person in 2019-20 and 2020-21.
• New measures to support individuals and businesses have also been announced including additional payments of up to $1,200 per year for each child under the age of 6 under the Canada Child Benefit, additional summer job placements for the youth, GST/HST relief for PPEs and a simplified Work from Home tax deduction.
• A new program called Highly Affected Sectors Credit Availability Program (HASCAP) will be launched to support the hardest-hit industries such as tourism, hotels, arts and culture and the air sector.
• The Federal Government announced that it will launch the Home Energy Retrofit program that will allow Canadians to qualify for grants up to $5,000 for work to make their homes more energy efficient.
• The Federal Government also announced that it will start applying GST/HST to digital platform based rentals (example: AirBnB) in July 2021. This measure applies to short term accommodations including residential complex or a residential unit that is rented to a person for a period of less than one month. In addition to this, the Government will also require foreign-based companies selling digital products or services in Canada to register for, collect and remit GST/HST on their taxable sales.

Sources: https://www.canada.ca/en/department-finance/news/2020/11/government-of-canada-releases-supporting-canadians-and-fighting-covid-19-fall-economic-statement-2020.html
https://www.cbc.ca/news/politics/freeland-highlights-fall-economic-update-1.5822404
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