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.

The start of the Government of Canada's planned federal capital gains tax hike will no longer be deferred, as it will now be cancelled.

The proposal, which was set to take effect in June last year, would have seen all businesses and individuals reporting more than $250,000 in capital gains in a year pay more tax on those proceeds