Ottawa, January 18, 2018
Canadian Manufacturers & Exporters sent, joined forces with members of the Canadian Manufacturing Coalition (CMC) and sent a letter to the federal minister of Finance, the Honourable William Morneau highlighting the priorities of the manufacturing sector for the 2018 federal budget.
The letter highlights the critical importance of manufacturing to the Canadian economy and outlines six tax reforms CME believes the government should consider to boost investment and growth in the sector:
- Reducing federal and provincial general corporate taxes to a combined 20 per cent.
- Expanding and improving the Accelerated Capital Cost Allowance (ACCA) depreciation rules to mirror the new US rules.
- Introducing an Investment Tax Credit on purchases of new equipment and software of between 10 and 15 per cent to help companies, especially SMEs, improve cash flow and offset the impact of the low Canadian dollar on the cost of buying foreign machinery and equipment.
- Introducing a “patent box” innovation support that would reduce taxes on profits from new products and product mandates. Canada has a terrific record of creating new innovations and research, but historically we have failed to turn those innovations into commercial successes.
- Lowering the top marginal personal income tax rate from 33 per cent to 31 per cent.
- Reforming the Scientific Research and Experimental Development (SRED) program to lower the administrative burden and support a broader range of corporate innovation needs, especially product commercialization.
Click here to read the full letter.
ABOUT CANADIAN MANUFACTURERS & EXPORTERS
Since 1871, Canadian Manufacturers & Exporters has been helping manufacturers grow at home and, compete around the world. Our focus is to ensure manufacturers are recognized as engines for growth in the economy, with Canada acknowledged as both a global leader and innovator in advanced manufacturing and a global leader in exporting. CME is a member-driven association that directly represents more than 2,500 leading companies who account for an estimated 82 per cent of manufacturing output and 90 per cent of Canada’s exports.
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