The 2024 federal budget: Some of the winners and losers

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OTTAWA – Here's a look at some of the winners and losers from the various fiscal and policy measures announced in the federal budget:

Winner: Small Business

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Carbon tax credits for small businesses will come five years after consumers start getting their share. The move is a “huge relief,” said Dan Kelly of the Canadian Federation of Independent Business, which represents the industry. The budget says 600,000 small firms are eligible for a share of $2.5 billion.

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The loser: the tobacco industry

The federal government will collect an extra $4 per pack of 200 cigarettes from Wednesday, on top of the $1.49 added on April 1 as part of an automatic inflation adjustment. In the budget, the excise tax rate on vaping products, seen as a public health issue affecting young Canadians who are “seduced by attractive marketing,” will increase to 12 per cent, or from 12 to 24 cents for regular vaping. Together, these measures should total approximately $1.7 billion over the next five years.

The winner (eventually): fintech companies

Long-promised details of the framework for open banking — a system that would allow consumers to easily access their financial data across multiple institutions, apps and services — were revealed in Wednesday's budget, although specifics were reserved for debate until the end of the legislation. year. It names the Financial Consumer Agency of Canada, which oversees and enforces the system, and outlines six key elements of the framework.

The budget also provides the Department of Finance with $4.1 million over three years to complete the policy work needed to establish and maintain an oversight entity and framework. The financial sector will welcome any clarity on the file after seeing it kicked around for years, but it is unclear what the timeline for implementation will be.

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Loser: Canada Pension Funds

A heated debate has erupted over whether the country's largest pension funds should invest more of their capital in Canada. They argue that they have already invested here and higher returns can be found abroad, while supporters of the move argue that the money should be spent on improving productivity and investing in businesses at home. The government says it will set up a task force led by finance minister and former Bank of Canada governor Stephen Poloz to study ways to stimulate spending in Canada, but it doesn't appear to have much teeth.

Meanwhile, the government says it will require financial regulator OSFI to disclose information about the investments of large federally regulated pension plans. This could see even greater scrutiny from climate change activists and interest groups hoping to change investment decisions.

Winner: Mobile and Internet users

Wireless costs are too high, telecom industry watchdogs told lawmakers earlier this year examining cellphone plans, even as prices have started to fall in recent years.

In the Budget, the government says it will make it easier to upgrade or switch mobile phone plans, which advocates say will make it easier to get a better rate. It also requires carriers to provide a self-service option, such as an online portal, so that customers can easily switch plans.

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Loser: Entertainment enthusiasts

Canadians have long complained about the high prices of concert and sports tickets. These prices keep fans out of the hands of those buying tickets from middlemen who use bot technology to gobble up seats once they go on sale.

The budget says the federal government will work with provinces and territories to adopt best practices in ticketing that will reduce surprise fees during the procurement process, crack down on fraudulent sellers and ensure Canadians get timely refunds when events are cancelled. However, it does not offer actionable measures or a timeline for accomplishing these feats, which could leave Canadians struggling with scalpers for a long time.

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