Federal budget favours manufacturers
March 8, 2010
By Manufacturing AUTOMATION
The Canadian government is hoping the 2010 Federal Budget will breathe new life into the country’s manufacturing sector by offering Canadian companies a competitive edge in the global marketplace.
As the country slowly emerges from one of the deeper recessions in recent memory, the 2010 budget will focus on assisting companies improve their productivity by making it easier for them to attract talented workers, participate in global markets and create a more competitive business environment.
Of particular note for Canadian manufacturers is the government’s commitment to create a tariff-free manufacturing zone. Building on moves the government made in 2009 – which saved Canadian manufacturers approximately $88 million in tariff costs – it now plans to finish off the job and eliminate all remaining tariffs on manufacturing inputs and machinery and equipment.
The majority of the remaining 1,541 tariffs were removed on March 5, 2010, and the rest will slowly be eliminated by January 1, 2015 – when Canada will become the first G20 country to allow industrial manufacturers to operate without the burden of tariffs.
The goal of the move is to save manufacturers money – an estimated $300 million in duty costs when all is said and done – that will not only allow Canadian manufacturers to explore global markets more easily, but will also make Canadian companies more attractive to foreign investors.
To see other ways the 2010 Federal Budget is helping businesses, click here.