CME urges federal government to extend CCA in next budget
OTTAWA, ON -- The federal government's most recent economic statement focused on the long-term needs of Canadian bu...
OTTAWA, ON — The federal government’s most recent economic statement focused on the long-term needs of Canadian business, but it didnt address the short-term problems of Canadas largest business sector, says the Canadian Manufacturers & Exporters (CME), an industry association.
The reduction in the federal corporate tax rate is an extremely important step in sustaining Canadas ability to retain and attract business investment. It keeps us in the game as countries around the globe are lowering their tax rates to do the same, said Jayson Myers, president of CME and chair of the Canadian Manufacturing Coalition.
This reduction is important to the long-term competitiveness of the Canadian economy. However, its disappointing the government didnt use this opportunity to also extend the window for the two-year write-off for investment in manufacturing technology.
Extending the Capital Cost Allowance (CCA) would have addressed the short-term cash flow problems that are challenging manufacturers and exporters across Canada.
With a sector that has experienced an appreciation of the loonie the past four years that in essence is acting like a 70% price cut, the extension of the CCA would encourage Canadian manufacturers to invest in the technologies that are essential for them to boost productivity, innovate their product lines, and remain competitive under very challenging economic conditions.
Were pleased the finance minister acknowledged the competitive challenges facing manufacturers, added Myers. Jim Flaherty said he isnt done yet — we arent either. We will continue to urge the federal government to take the important step of extending CCA in the next budget — the health of our manufacturing sector is on the line.