National Bank CEO slams Canada's capital gains tax increase

The chief executive officer of one of Canada’s largest banks is speaking out against the Trudeau government’s plan to raise taxes on capital gains, arguing it won’t spur investment in the country.

“It does not send the right signal for risk-taking, for investments, innovation or long-term wealth creation and ultimately for the social fabric of our country,” Laurent Ferreira, CEO of National Bank of Canada, said in an interview Friday.

Ferreira addressed shareholders of National Bank, the country’s sixth-largest lender, earlier in the day during the bank’s annual meeting in Montreal. He explained why he was the only big bank CEO to sign an open letter last month calling on Canada’s large and influential pension funds to invest more domestically.

“My objective was to stimulate a discussion around the investment and productivity challenges in our country,” Ferreira said at the meeting. “All investors and banks must contribute to strengthening the Canadian economy by investing within our borders.”