Federal Finance Minister Jim Flaherty hinted yesterday he will not eliminate the capital gains tax in his first budget.

The Conservative government had campaigned on eliminating the tax for individuals on the sale of assets when proceeds are reinvested within six months. “With respect to this particular initiative, we will be taking some time to consult Canadians before moving forward” he said in a speech to the Surrey Chamber of Commerce on Monday

In his speech, Flaherty said the Conservatives will reduce the GST one percentage point immediately as promised.

He wouldn’t say when the government would eliminate another percentage point.

The Conservatives campaigned on taking the GST to 5% instead of the current 7%.

“Everyone from a newspaper carrier to a senior on a fixed income will see a savings,” Flaherty said.

“And, unlike other tax measures, no future government will be able to take this tax cut away from you stealth.”

Flaherty said the government would lower small business taxes and create a tax incentive to hire new apprentices because of the severe shortage of trades people including plumbers and electricians.

The Conservatives plan to raise the threshold at which businesses have to pay the general corporate tax rate and will also cut the small-business rate itself within five years.