The Conservative Party in Canada has urged the government to stop collecting taxes on capital gains at the high inclusion rate introduced by the Liberals as part of last year's budget.

In a letter to Finance Minister Dominic LeBlanc, the Conservative Party's financial watchdog, Jasraj Singh Hallan, wrote that this high rate should not be applied as it has not been officially passed in Parliament. Hallan added in his message, sent on Tuesday: “You are taking money from small businesses without Parliament's approval, and you have created a nightmare for Canadians trying to file their taxes across our country.”

Hallan confirmed that the Finance Minister is responsible for stopping this tax increase that harms jobs before it causes further damage to the Canadian economy. He mentioned in the letter that if the government refuses to take this step, it should at least direct the Canada Revenue Agency to stop collecting these taxes until after the elections.

Hallan signed the letter in collaboration with Adam Chambers, the Conservative critic for national revenue.

The federal April budget announced an increase in the tax "inclusion rate" on capital gains, which are the profits individuals or companies make from selling assets like stocks or real estate. The inclusion rate was raised from half to two-thirds on capital gains over $250,000 for individuals, and on all capital gains earned by corporations and credits.

Legislation aimed at adjusting capital gains was under review in the House of Commons, but it has now become almost ineffective after Prime Minister Justin Trudeau requested Parliament to suspend its proceedings.