Canada’s decision to increase the capital gains inclusion rate is unlikely to generate as much cash as Justin Trudeau’s government expects, a research group says.

The changes will add a net $3.3 billion to federal government revenues from individuals over five years, according to a paper being released Thursday by the C.D. Howe Institute.

That’s less than 40 per cent of the $8.8 billion forecast by the government when Finance Minister Chrystia Freeland proposed the tax changes in April.

Weaker-than-expected revenue gains would raise questions about the benefits of the tax changes, which have faced widespread criticism{ai:summary}<p>Canada's increase in the capital gains inclusion rate is projected to yield only $3.3 billion in revenue over five years, significantly lower than the government's estimate of $8.8 billion. This assessment comes from the C.D. Howe Institute. </p><p>The findings suggest that the government's expectations may be overly optimistic. #economy</p>

Capital gains tax hike to yield less than 40% of revenue forecast by Liberals: C.D. Howe report

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