Forgot your account information?  |  Create a CME account

BC needs competitive tax plan to create jobs, drive growth in uncertain economic times: CME

Published by Derek Lothian on May 11, 2012

British Columbia needs to expedite the adoption of a globally competitive tax regime to transform economic opportunity into good jobs, business growth, and new investment, according to a research paper published today by Canadian Manufacturers & Exporters (CME).

The report calls on the provincial government to adopt several key recommendations to ensure BC remains a world-class destination for private sector investment and innovation, such as an exemption for manufacturers that will be hit hard by the planned increase in the corporate tax rate, and the introduction of an input tax credit to offset the repeal of the Harmonized Sales Tax (HST).

"Over the past decade, BC companies have faced an uncertain and uncompetitive taxation climate, costing the manufacturing sector – the most productive in our economy – hundreds of millions of dollars each year," explains Peter Jeffrey, vice president, CME BC. "Compound this with a high Canadian dollar, soaring input costs and growing competition in primary markets, and there is a significant barrier to prosperity. We need to move forward, not backward on tax policy."

Other recommendations put forth in the report include improvements to the research and development tax credit program, the implementation of a clear and transparent loss transfer system, a review of the municipal tax code, and an impact assessment of the carbon tax on industry. With more than $500 billion in major projects expected to launch across the country over the next decade, BC manufacturers – representing 400,000 workers in the province – believe immediate reform is necessary to capitalize on unprecedented market opportunity.

"These measures should set the basis for a comprehensive, value added manufacturing and exporting strategy in British Columbia," says Jeffrey. "Industry needs strong leadership and a proactive action plan that will help support manufacturing as a critical source of employment and growth, and a driver for the quality of life we all expect and enjoy."

To read the full submission, please visit http://bit.ly/taxcompetitiveness.

Found in: news cmenews

National Office

Alberta British Columbia
Manitoba New Brunswick
Newfoundland & Labrador Nova Scotia
Ontario Québec
Prince Edward Island Saskatchewan