A new report from the C.D. Howe Institute says the proposed increase in the capital gains tax rate would impact people and companies more broadly than the government estimates and argues it should be scrapped amid political uncertainty.

OTTAWA--To the ire of business groups, Canadian authorities intend to collect proceeds based on a higher capital-gains tax even though the Liberal government failed to pass implementing legislation before outgoing Prime Minister Justin Trudeau dissolved parliament.

The federal government says the Canada Revenue Agency will continue to administer the capital gains tax changes proposed in the budget last year, even though they haven't passed in Parliament, which is prorogued until March 24.