Prime Minister Justin Trudeau said in a speech that the wage subsidy would increase an earlier pledge to cover only 10% of Canadian companies' payrolls, retroactive to March 15.
"We had announced that we would cover 10% of wages, but it's becoming clear that we need to do more — much more — so we're bringing that percentage up to 75% for qualifying businesses," Trudeau said. "This means that people will continue to be paid, even though their employer has had to slow down or stop its operations because of COVID-19."
Last week, the prime minister presented a CA$82 billion ($58.5 billion) stimulus package, with CA$27 billion allocated for businesses and individuals through measures such as wage subsidies and the topping up of benefits. A further CA$55 billion in tax deferrals is meant to keep liquidity in the economy.
On Friday, Trudeau said payments of Canada's goods-and-services tax and harmonized sales tax as well as duties and taxes on imports will be postponed until June, the equivalent of giving CA$30 billion in interest-free loans to businesses, he said.
Also announced was the creation of a CA$25 billion Canada Emergency Business Account program, to give small businesses access to government-backed bank loans of up to CA$40,000 interest-free for the first year, of which CA$10,000 will be forgivable.
An additional CA$12.5 billion will be available through Export Development Canada and the Business Development Bank of Canada to help businesses that face operating cash-flow crunches and require emergency infusions of capital.
--Editing by Neil Cohen.
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