Disability benefit Canada: Proposed tax rule change [Video]

OTTAWA –

The Liberals are planning to introduce legislation to exempt the Canada Disability Benefit from being treated as income under the Income Tax Act.

The fall economic statement, which was released on Monday, is also calling on the provinces and territories to ensure the program’s recipients do not have their other benefits reduced as a result of it.

• The information you need to know, sent directly to you: Download the CTV News App

“The government will be monitoring the decisions of provinces and territories and is prepared to take action to ensure the federal benefit is not clawed back,” the fall economic statement says.

The disability benefit, which is set to take effect in July, would see eligible people receive up to $200 per month.

While advocates critiqued the amount for being too low, some have also raised concerns that if the benefit were considered taxable income, it could lead to …