Canada’s medical associations call on federal government to halt capital gains increase

January 15, 2025

Doctors of BC has joined the Canadian Medical Association and other provincial and territorial medical associations in signing a letter calling on the federal government to halt the yet to be approved increase to the capital gains inclusion rate for medical professional corporations. 

The letter expresses concern over the financial and professional implications of the tax change, highlighting it retroactively increases taxes on doctors’ retirement savings and discourages new graduates from considering community-based practice. It also warns of the broader consequences for Canada’s strained healthcare system, emphasizing ongoing challenges like physician shortages, overwhelmed emergency departments, surgical backlogs, and the consequences of additional financial pressures on physician recruitment and retention. 

Adding urgency to this appeal is Parliament’s recent prorogation and the looming federal election, both of which could delay any resolution.  

Doctors work hard, they work long hours, and already have high costs associated with running their medical practices. We ask government to direct the Canada Revenue Agency to halt the implementation of this unapproved tax measure and not add further stressors on our doctors when they are already burning out trying to keep their medical practices afloat. 

You can read the full letter to the Finance Minister here: Medical associations call on government to drop capital gains plans