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.