Canadian tech leaders request federal tax incentives in open letter

Hundreds of Canadian technology executives, venture investors, and business leaders submitted an open letter to the federal government on October 13, 2026, requesting new tax incentives in the upcoming federal budget. The proposal asks Prime Minister Mark Carney's administration to introduce capital gains rollover provisions and a tax incentive modeled after the United States Qualified Small Business Stock rules.

The letter's authors argue that tax reform is necessary to support Canada's long-term digital competitiveness. According to a report by BetaKit, the proposed measures aim to derisk domestic venture investments, keep scaling technology companies in the country, and retain local talent and capital.

Signatories to the letter include Claudio Rojas, chief executive officer of the National Angel Capital Organization, and Ben Bergen, chief executive officer of the Canadian Venture Capital and Private Equity Association. "We want to see Canadian companies succeed, we want to control our own destiny, and that aligns quite well with the signals that we’re seeing from this government that they’re willing to take action," Rojas told BetaKit.

The outreach reflects renewed engagement between the domestic technology ecosystem and federal officials following past policy friction. Two years ago, the Liberal government under former Prime Minister Justin Trudeau proposed raising the capital gains tax inclusion rate, which drew strong pushback from industry leaders. Roadmunk co-founder Latif Nanji noted last year that the earlier proposal had severely hurt the relationship between the government and the technology sector. The inclusion rate hike was later scrapped after Carney replaced Trudeau as party leader.

Industry representatives emphasized that broader systemic changes are needed beyond tax policy. Bergen noted that transforming Canada's technology sector will require more than a single budget, investment summit, or leadership change. Additionally, community builder Jesse Rodgers recommended removing personal guarantees on business loans and commercial leases to lower risks for founders.

The open letter was presented to federal officials on October 13, 2026. The government is expected to release its next federal budget next month.