Nichola Saminather

TORONTO (Reuters), – Toronto-Dominion Bank Chief Executive Bharat Marani slammed the Canadian Liberal government for a planned tax on banks. He also called on policymakers to make sure Canada has a meaningful role in support of energy security.

Canada will increase corporate taxes on the most profit-oriented banks and insurers by 16.5% to 15% for all income above C$100million ($79.6 millions). A 15% one-time tax was also imposed on income exceeding C$1billion.

Last week’s federal budget detailed the proposal that was first made by the Liberals as part of a campaign promise in August. Even before budget announcement, the proposal was already drawing the fury of investors and bank executives.

Masrani stated that the decision by the government to exclude the banking sector from its tax policies was not a good one and could have unintended consequences.

“One our greatest assets is that the United States has one of the most robust and stable financial system in the world,” he stated. We must continue to be a leader on the global stage and become a major banking center.

Masrani also demanded that Canada play a “meaningful part” in supporting energy security globally and across North America. She said the transition to a low carbon future would take many years.

Climate-conscious investors have criticized TD and Canadian banks for continuing to support fossil fuel companies. A shareholder proposal, which calls on the bank to cease financing fossil fuels by year’s end, is up for vote. The board recommended that investors vote against it.

“Without reliable, responsible and sustainable energy supplies to meet future and current demand, progress could stall with disastrous economic and social implications,” he stated. One clear example is the pressure on energy supplies as a consequence of the conflict in Ukraine.

($1 = 1.2564 Canadian dollars)