TORONTO
Finance Minister François-Philippe Champagne says Thursday's federal budget will include new measures to simplify the tax code for small- and medium-sized businesses.
Champagne told a business audience in Toronto on Monday that the budget is about entrepreneurs, innovators and creators.
"This is a budget about entrepreneurs. This is about a budget [for] innovators. This is about the budget for creators, and they will see themselves," he said at the Canadian Club Toronto.
He said Canada's tax code has "a number of boutique things" that can be difficult for small businesses unless they have a tax adviser.
"I think you will see in this budget a journey to fixing a number of things, to make things more simple. To simplify the life of small- and medium-sized businesses," Champagne said.
He would not offer specific examples of what the federal government is proposing, but suggested Ottawa is considering more changes to the Scientific Research and Experimental Development program.
The minister said the budget will also include new details on major policies, including the Canada Strong Fund investment vehicle and plans to modernize the ownership structure of Canada's largest airports.
One of the big-ticket measures already accounted for is the Productivity Mega Deduction, which the government announced in September and is estimated to cost $36 billion over five years.
That program allows businesses to immediately write off the full value of an eligible capital investment in its first year. Champagne said it could help a local café buy a new coffee machine.
"It's our government's signal to Canadians to use their capital right here in Canada, to invest in new machinery and technology, to expand their enterprises," he said.
The budget is the second to be delivered under Prime Minister Mark Carney. It is expected to support the government's push to reduce Canada's reliance on the United States by building up the domestic economy.
"At its core, our plan is about changing Canada's growth model," Champagne said in his speech.
When asked how renewed momentum in U.S. trade talks could affect Ottawa's spending plans, the finance minister brushed off the question.
"It's not about them," he said. "This is about us, regaining our ability to build."
The Canadian Federation of Independent Business has called on Ottawa to use the budget to lower the small business tax rate and fix gaps in the federal tariff relief regime.
"Small businesses tell us they don't want handouts. They want broad policies that would help them reinvest in their businesses and plan for the future," said Corinne Pohlmann, CFIB executive vice-president of advocacy.
On Sunday, Conservative Leader Pierre Poilievre released an open letter to Carney outlining the Official Opposition's proposals for the budget. e2gold.ca reported earlier this week that Poilievre called for suspending GST on diesel until Canada Day and cutting the public service.
He said the government should cut wasteful spending, reduce debt and deficits, and eliminate fuel taxes.
The budget will be tabled on Thursday.
This story was written by the e2gold.ca newsroom from reporting by The Globe and Mail, CityNews and insauga.com. Quotes are checked word for word against that reporting.