Federal budget: Bank tax could hurt Canada’s competitiveness, CIBC CEO says

CIBC’s chief executive officer says a tax hike targeting major financial institutions expected in today’s federal budget could send the wrong signal to the world about investing in Canada.

The Liberals promised in their 2021 election platform to hike the corporate tax rate for banks and insurers with profits over $1 billion.

The party estimated such a measure _ aimed at companies that saw record profits during the pandemic _ would bring in about $1.2 billion a year.

CEO Victor Dodig says he is an advocate for competitive tax policy, not policy that targets specific industries, and that he is supportive of moves that drive more human capital and foreign direct investment in Canada.

Dodig also weighed in on the state of the economy, saying it’s too early to be sounding the alarm on a recession after some recent movement in the U.S. bond market sparked concerns about a possible contraction.

The bank is holding its annual meeting of shareholders today.

by The Canadian Press