PM Stephen Harper announces tax rules that allow manufacturers to write off equipment
Canadian manufacturers will be able to write off equipment more quickly under proposed tax rule changes, Prime Minister Stephen Harper announced Thursday in Windsor, Ont.
The prime minister made the announcement at auto parts manufacturer Valiant Machine and Tool.
The idea is to provide a faster capital cost allowance. The rate climbs to 50 per cent for machinery and equipment, up from 30 per cent.
The plan is to have it in effect for 10 years -- starting for assets acquired this year.
The government says this will allow manufacturers to plan better and create jobs.
Harper said Canada is the "first country in the G20 to become a tariff-free zone for manufacturing."
Harper went on to highlight other items tabled in the 2015 federal budget.
Harper touted the fact his Conservative Party balanced the budget, cut business taxes and removed tariffs on some equipment used in the manufacturing industry.
The 2015 budget announced earlier this year also provides manufacturers a 10-year tax incentive to boost productivity-enhancing investment.
It also provides up to $100 million over five years, starting in 2015–16, to support product development by Canadian automotive parts suppliers through the new Automotive Supplier Innovation Program.
Harper also touted the Advanced Manufacturing Fund.
"The manufacturing industry is a key pillar of the Canadian economy. It is a high-tech, high-skill economic engine," Harper said. "It provides good, well-paying jobs for hard-working Canadians across the country.
"There's a tradition of manufacturing excellence in Canada."
Harper said the manufacturing industry directly employs 1.7 million people across Canada.
"As prime minister, I care about it," he said of the industry. "We have been focussed on building the future of this sector."
Wednesday night, Harper held a roundtable discussion with members of the auto parts industry at the Waterfront Hotel.
With files from the Canadian Press