Ottawa pitches full business tax write-off at Surrey’s Nanak Foods

By StudioX News Lower Mainland Desk

StudioX News

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SURREY, B.C. — Two Surrey MPs visited Nanak Foods in Campbell Heights on Friday, November 13, to promote a federal tax measure intended to encourage Canadian companies to invest in equipment, technology and growth.

Secretary of State (International Development) Randeep Sarai, MP for Surrey Centre, and Ernie Klassen, MP for South Surrey–White Rock and Parliamentary Secretary to the Minister of Fisheries, took part in the Budget 2026 announcement at the food-processing facility. StudioX News attended the announcement and tour.

What the Productivity Mega Deduction proposes

The Productivity Mega Deduction would allow businesses to deduct the full cost of a wider range of eligible capital assets in the year they become available for use, rather than spreading tax deductions over several years. The federal government says immediate expensing would apply to more than 65% of business investment on a permanent basis.

Finance Canada’s September 15 backgrounder proposes applying the expanded measure to most qualifying depreciable property acquired on or after September 15, 2026. Exceptions include some buildings, vehicles and intangible assets. A 100% first-year deduction is not a cash rebate and does not cover every business purchase.

Ottawa estimates the change would reduce Canada’s marginal effective tax rate on new business investment from 13% to 6.4%, with an incremental fiscal cost of $36 billion over five years. Over a ten-year period, Finance Canada projects the policy could eventually support up to $22 billion in additional annual economic output and up to 80,000 additional jobs. These are projections, not observed outcomes.

Why Nanak Foods?

The November 13 Global Affairs Canada announcement used Nanak Foods as an example of a Canadian business that could benefit from more predictable incentives for major purchases. Sarai said in his official statement that more certainty for companies considering investments could ultimately lead to more jobs and production capacity.

Klassen joined Sarai at the Surrey event, where the two elected officials presented the federal government’s case for encouraging investment amid international trade pressures. They subsequently toured the plant.

Company expansion and earlier public support

Nanak Foods produces South Asian dairy products such as paneer, ghee and yogurt. In 2023, the Government of British Columbia committed up to $7.5 million through the Manufacturing Jobs Fund to support Punjab Milk Foods in establishing a new dairy-processing facility in Surrey, including production, packaging and storage equipment.

The company also appeared in a July 2026 federal PacifiCan funding announcement covering four Surrey businesses. Ottawa said the Nanak Foods investment would support automation of production and warehousing, strengthen domestic food manufacturing and help the company pursue international markets.

What happens next?

The Finance Canada backgrounder outlines the deduction as a legislative proposal. Businesses planning equipment or other capital purchases should confirm the current legal status and detailed eligibility rules with a qualified adviser before relying on the tax treatment. The federal government’s claimed economic and employment gains remain forecasts.

Official government sources

• Global Affairs Canada — November 13 announcement
• Budget 2026 — Budget in brief
• Finance Canada — September 15 tax backgrounder
• PacifiCan — Surrey manufacturing investments
• B.C. government — Punjab Milk Foods facility support

StudioX News Lower Mainland Desk

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The StudioX News Lower Mainland Desk covers Metro Vancouver, the Fraser Valley and the Sea-to-Sky corridor. Stories are written by the StudioX News newsroom from official sources (governments, police, emergency services, utilities, transit and health authorities) and checked against our editorial standards. To report an error, use the Report an error button on any story.

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StudioX News Lower Mainland Desk

StudioX News regional desk

The StudioX News Lower Mainland Desk covers Metro Vancouver, the Fraser Valley and the Sea-to-Sky corridor. Stories are written by the StudioX News newsroom from official sources (governments, police, emergency services, utilities, transit and health authorities) and checked against our editorial standards. To report an error, use the Report an error button on any story.

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