Tax on share buybacks to raise $3 billion in government revenue over five years: PBO

OTTAWA — The parliamentary budget officer says the federal Liberals’ planned tax on corporate share buybacks will raise $3 billion in government revenue over the next five years.

A new report prepared by Yves Giroux’s office assesses the projected impact of the tax on government finances between the 2023-24 and 2027-28 fiscal years.

The Liberals committed in their fall fiscal update to imposing a two per cent tax on stock buybacks that would go into effect in 2024.

The mid-year budget update had estimated that the tax would earn the government $2.1 billion in revenue over the next five years.