CANADIAN Prime Minister Justin Trudeau’s government announced on Tuesday that it is imposing higher taxes on the wealthiest Canadians as part of the federal budget.

The budget proposes to increase the capital gains inclusion rate, which refers to the taxable share of profit made on the sale of assets.

The taxable portion of capital gains above $250,000 (£145,342) would rise from half to two-thirds, which the federal government says will only affect 0.1 per cent of Canadians and raise nearly $20 billion (£11.6bn) in revenue over five years.

“I know there will be many voices raised in protest. No-one likes paying more tax, even — or perhaps particularly — those who can afford it the most,” Finance Minister Chrystia Freeland said.

“But before they complain too bitterly, I would like Canada’s 1 per cent — Canada’s 0.1 per cent — to consider this: What kind of Canada do you want to live in?”

Ms Freeland presented the federal budget, which pledges $53bn (£30.8bn) in new spending that she says is focused on economic justice for younger generations.

She acknowledged that for anyone under 40 in Canada, it’s “just harder to establish yourself” than it was for the generations that came before.

Mr Trudeau’s Liberal government is trailing badly in the polls amid concerns over the cost of living.