The 2018 Fall Economic Statement proposes several measures that the association believes will enhance the investment competitiveness of Canada’s mining and metal manufacturing sectors, including:
- The Accelerated Investment Incentive, which will enable miners to write off three times the eligible cost of newly acquired assets in the year the investment is made.
- Extending the Mineral Exploration Tax Credit (METC) for a five-year term, bringing greater investment certainty for early stage mineral exploration.
- Allowing businesses to immediately write-off the full cost of clean energy equipment.
“The enhanced treatment of capital expenditures in the first year for mining and metal manufacturing provides an important incentive to invest in Canada at a time when the mining industry is enjoying generally stronger commodity prices and is looking at growth prospects around the world,” said Pierre Gratton, President and CEO for MAC.
“The write-off of the full cost of clean energy equipment will serve to incentivise investments in northern Canada where access to grid power does not exist, supporting a transition to low carbon energy alternatives. We are hopeful that this will also include the transition currently underway to move towards the use of electric haul trucks, and other heavy equipment. Extending the METC for five years, a request of the exploration sector for many years, is a major boost for mineral explorers and will help Canada recapture the top global position for mineral exploration investment.”
Canada’s tax regime has fallen behind international competitors in recent years, according to MAC. Budgets 2012 and 2013 reduced or eliminated several direct and indirect mining related tax credits. Most recently, the US Tax Cuts and Jobs Act reforms significantly reduced Canada’s mining tax competitiveness vis-à-vis the US.
“Canada’s tax regime is a major determinant of its attractiveness for domestic and international mining investment,” said Gratton. “MAC appreciates the government’s recognition of the need to improve Canada’s investment competitiveness in mining.”
Other measures contained in the Fall Economic Statement that MAC welcomed include:
- An additional CAN$800 million over five years for the Strategic-Innovation Fund.
- A commitment to increase overseas exports by 50% by 2025.
- A proposed increase of CAN$13.6 million to the Multimodal Integrated Passenger-Freight Information System.
- Bolstering the Canadian Trade Commissioners Service, including a tripling of its CanExport program to help Canadian businesses move into new markets. The mining and mining supply sector significantly values the work of Trade Commissioners around the world that support our access to global markets.
- A suite of proposals to improve regulatory competitiveness, including the establishment of a dedicated External Advisory Committee on Regulatory Competitiveness.
- Accelerated investment of CAN$773.9 million over the next five years of national, trade-corridors funding.
Read the article online at: https://www.globalminingreview.com/finance-business/23112018/mining-association-of-canada-welcomes-federal-governments-fall-economic-statement/