Taxes on banks, life insurers could reap $5.3bn over five years – PBO

Proposed federal taxes on certain financial institutions could generate $5.3 billion in the next five years, according to two new reports from the parliamentary budget officer (PBO).

Those mooted taxes include the Canada Recovery Dividend, a one-time 15% windfall tax on profits made by banks and life insurers during the COVID-19 pandemic, and a proposed permanent increase to the corporate taxes paid by banks and life insurance groups.

The former would generate $3 billion, according to the PBO, while a planned hike to bank and insurance profits over $100 million – from 15% to 16.5% – could produce $2.3 billion in the next five years.