Canadian business leaders push Ottawa to prioritise tax reform and competitiveness ahead of Budget 2026

Executives want action, not announcements

Canadian business leaders are urging the federal government to move beyond policy statements and deliver concrete tax and competitiveness measures in Budget 2026, according to a new KPMG Canada survey released in mid October. The survey of 346 business owners and decision makers found strong consensus that Ottawa should use the upcoming budget to make Canada more attractive for investment and to help companies manage escalating trade frictions with the United States.

High demand for tax overhaul

The KPMG poll found that a substantial majority of respondents back broad tax reform rather than isolated, targeted incentives. Business leaders told KPMG they want a simpler tax code, lower effective rates on new investment, and clearer, stable rules that will encourage capital spending and long term planning. The message to government is that modest or piecemeal measures will not be enough to shift investment decisions already being influenced by rival jurisdictions.

Trade uncertainty and competitiveness top the agenda

Respondents also highlighted trade uncertainty as a critical headwind for growth. With tariffs and countermeasures between Canada and the United States weighing on some sectors, leaders want Budget 2026 to include supports for supply chain resilience, export diversification and investment in trade enabling infrastructure. Surveyed executives signalled they would favour policies that reduce firms exposure to bilateral shocks and enable faster reorientation of inputs and markets.

Where Ottawa can act quickly

Survey respondents identified a handful of near term priorities they believe the government can reasonably address in the budget. These include enhanced investment tax incentives aimed at capital-intensive industries, temporary transitional supports for companies affected by tariffs, and targeted funding for logistics, ports and cross border gateways. Firms also called for measures to speed commercial adoption of advanced technologies such as artificial intelligence, which executives see as central to competitiveness.

Why this matters for Canada

Canada is in the midst of a policy pivot that seeks to strengthen domestic capacity while diversifying economic ties. The business communitys appetite for tax reform and competitiveness measures is consequential because capital allocation decisions typically respond to tax and regulatory signals. If Ottawa wants to attract multinational projects, encourage domestic investment and protect jobs, the calculations companies make this winter and next year will matter for growth, productivity and public finances over the medium term.

Political and fiscal constraints

Officials face a balancing act. Government budgets are constrained and the political backdrop includes trade negotiations and public expectations for responsible spending. Major tax reform can be complex and take time to implement. Several leaders who responded to the survey acknowledged that the full transformation they seek may not be achievable in a single budget, but they told KPMG they expect Budget 2026 to set a credible path, including near term, implementable steps.

Signals ahead of Budget day

Finance officials are due to table the 2026 federal budget in early November. Business groups and professional advisers will be watching closely for concrete signals on the size, scope and timing of any tax changes, and for measures aimed at trade and infrastructure. The survey is likely to increase pressure on Ottawa to show that its previously announced economic strategy will be matched by tangible tools for business.

Industry implications

A clearer tax regime and targeted investment incentives could make Canada more competitive for projects in manufacturing, clean energy and high technology, sectors that respondents identified as priorities. At the same time, transitional supports and infrastructure spending could ease near term disruption for companies facing tariff related challenges, while trade diversification efforts could reduce reliance on single markets over the medium term.

What businesses say next

For now, the business communitys message is straightforward. Executives want the government to translate its economic priorities into measures that materially change investment economics and reduce exposure to trade risk. Whether Ottawa responds with a package that meets those expectations will become clearer after Budget 2026 is tabled and the details are scrutinised by industry, investors and parliamentarians.

As Canada prepares for the budget, business leaders say they are watching for not just promises, but credible timetables and measurable steps that will influence corporate decisions in the months ahead.