The World : Canada Will Raise Taxes

Canada’s new Progressive Conservative government presented a belt-tightening $76.7-billion budget that sought to trim the rapidly expanding government deficit. Canadians will be hit with 1% increases in tobacco, alcohol and gasoline taxes “to get off this deficit treadmill,” as Finance Minister Michael Wilson put it. A special deficit-reduction surtax was imposed on top-bracket money earners by Wilson, who pledged to reduce the deficit by $3.2 billion to $24.7 billion this fiscal year. Federal spending was slashed in many sectors, with plans announced to sell up to 14 state-owned corporations.