Parliamentary Budget Officer Yves Giroux prepares to appear before the Senate Committee on Official Languages, in Ottawa, on Monday, June 13, 2022. The parliamentary budget officer estimates new taxes on banks and life insurers will generate more than $5 billion in revenue over the next five years.THE CANADIAN PRESS/Justin Tang

New taxes on banks and life insurers will generate $5.3 billion over five years: PBO

The parliamentary budget officer estimates proposed new federal taxes on some financial institutions could generate $5.3 billion over the next five years.

Two new PBO reports calculate the expected revenues from the Canada Recovery Dividend and a proposed permanent increase to corporate taxes on banks and life insurance groups.

The dividend is a one-time 15 per cent windfall tax on banks and life insurers profits made during the pandemic and the PBO says it will generate $3 billion.

Finance Minister Chrystia Freeland is also proposing to hike the corporate tax rate on bank and insurance profits over $100 million.

The PBO says increasing that rate from 15 per cent to 16 .5 per cent would generate $2.3 billion over the next five years.

The federal budget published last April predicted the two measures would raise more than $6 billion.