Budget 2022: Key Highlights | Morningstar

The government plans to implement a “Canada Recovery Dividend,” under which banks and life insurers will pay a one-time 15% tax on taxable income above $1 billion for the 2021 tax year.

According to a Canadian Press report earlier today, CIBC ‘s chief executive officer said a tax hike targeting major financial institutions could send the wrong signal to the world about investing in Canada.

“To help Canadians save for their first home, Budget 2022 proposes to introduce the Tax-Free First Home Savings Account that would give prospective first-time home buyers the ability to save up to $40,000.

To help make zero-emission vehicles more affordable for Canadians, Budget 2022 “proposes to provide $1.7 billion over five years, starting in 2022-23, with $0.8 million in remaining amortization, to Transport Canada to extend the Incentives for Zero-Emission Vehicles program until March 2025.

Charging stations are not left behind, as the Canada Infrastructure Bank will invest $500 million in large-scale urban and commercial zero-emission vehicle charging and refuelling infrastructure.

If our base-case assumptions are true the market price will converge on our fair value estimate over time, generally within three years.

The Quantitative Fair Value Estimate is based on a statistical model derived from the Fair Value Estimate Morningstar’s equity analysts assign to companies which includes a financial forecast of the company.

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