News Release

IFIC Makes Submission to the Pre-Budget Consultations in Advance of the 2020 Federal Budget

August 1, 2019 (Toronto) – The Investment Funds Institute of Canada (IFIC) today filed its submission to the Government of Canada responding to its request for input into the 2020 budget. IFIC recommended that the government discontinue charging GST/HST on mutual funds held in registered retirement savings plan (RRSP) accounts with the objective of helping Canadians achieve retirement security.

Today, it is increasingly challenging for Canadians to achieve financial readiness for retirement. With fewer workers covered by an employer pension plan, persistently low interest rates and longer life expectancies, the need for personal savings is more important than ever. While government programs like RRSPs are designed to encourage Canadians to save for retirement, these efforts are undermined by sales taxes that continue to be unfairly applied to investment fund management fees, reducing the retirement savings in Canada’s most popular retirement investment vehicle.

“Discontinuing the GST/HST on investment funds held in RRSP accounts is a simple step that would immediately deliver important benefits to millions of modest investors in Canada who are working to save enough for their retirements,” said Paul Bourque, President and CEO, IFIC. “This efficient and effective solution is also firmly aligned with the government’s policy priority to help Canadians save more.”

About IFIC

The Investment Funds Institute of Canada is the voice of Canada’s investment funds industry. IFIC brings together 150 organizations, including fund managers, distributors and industry service organizations, to foster a strong, stable investment sector where investors can realize their financial goals. By connecting Canada’s savers to Canada’s economy, our industry contributes significantly to Canadian economic growth and job creation.

For more information please contact:

Pira Kumarasamy
Senior Manager, Communications and Public Affairs
pkumarasamy@ific.ca
416-309-2317