Ottawa pitches Productivity Mega Deduction as permanent immediate expensing for most capital assets

Independent analysts are more cautious about the fiscal trade-offs. The Canadian Tax Observatory notes Finance Canada pegs the Mega Deduction's cost at about $36 billion over five years and estimates it could lift economic output by up to roughly $22 billion a year on average over a decade — while urging Ottawa to publish clearer assumptions on how much investment would be truly new versus merely accelerated, and how start-ups or loss-making firms that cannot use the deduction immediately will fare. Sources: CNW / Government of Canada; Canadian Tax Observatory.