Canada will cancel a proposed tax increase in the capital gains inclusion rate, Prime Minister Mark Carney's office said on Friday, bringing an end to a tax measure that had been widely criticized by industry.

Carney confirmed in his victory speech on Sunday that he would kill the planned capital gains hike. The new rules would have seen Canadians pay more tax on capital gains earned over $250,000 in a year, while businesses would have paid the higher amount on all capital gains.