Federal gov’t to end machinery import tariff
Canadian Plastics
Economy Plastics Industry Economic Changes/ForecastThe federal government will eliminate the last of the manufacturing import tariffs.
The federal government will eliminate the last of the manufacturing import tariffs.
On Friday, Finance Minister Jim Flaherty formally announced his intention to eliminate border levies on imported machinery and equipment.
The plan, which Ottawa estimates could save businesses as much as $250 million, is designed to lower companies’ input costs as they struggle to break free of the recession.
The move will also cost the government as much as $300-million in sacrificed revenue.
The federal government eliminated tariffs on some imported machinery in last January’s budget. At the time, the government estimated the move would reduce business costs by about $440 million over five years.
“The tariff relief initiative…follows from our economic action plan in January and will reduce production costs even further, providing both a short-term boost and a long-term competitive edge for Canadian industry,” Flaherty said in a statement.
