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BC needs competitive tax plan to capitalize on unprecedented economic opportunity, CME tells Expert Panel on Tax

Published by Derek Lothian on June 20, 2012

British Columbia must adopt a globally competitive tax system to drive private sector investment, create high paying jobs and capitalize on unprecedented economic opportunity, according to a presentation yesterday by Canadian Manufacturers & Exporters (CME) to the province's Expert Panel on Tax.

Officials from CME outlined a six-point action plan for the government, which included 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). Much-needed improvements to the research and development tax credit program were also highlighted as "key" for nurturing world-class innovation in BC.

"BC manufacturers have faced one of the most uncertain and uncompetitive taxation climates in the country, slowing growth and costing millions of dollars each year," explains CME President & CEO, Jayson Myers. "From resource development to shipbuilding projects, it is an exciting time for industry in Western Canada. And if we want to reap the economic benefits here in BC, we cannot afford to continue moving backward on tax policy."

Other recommendations brought forth to the panel focused on the adoption 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.

The manufacturing sector in BC represents approximately 12,000 companies, 400,000 workers, and $8.6 billion in wages – 15 per cent higher than the overall average.

"These are critically important measures for the BC economy that should establish the framework for a comprehensive, value-added manufacturing and exporting strategy in the province," says Myers. "With a high Loonie, soaring input costs and stiffened competition in primary markets, leadership makes the difference. Together, with government, we can manufacture a prosperous future for the next generation of British Columbians."

Found in: cmenews news

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