Ottawa, ON — Budget 2009, introduced to Canadians Jan. 27, 2009, by the federal government, proposes to permanently eliminate or reduce tariffs on a range of machinery and equipment imported into Canada after Jan. 27, 2009.
This measure will lower costs for Canadian producers in a variety of sectors, such as forestry, energy and food processing, which must purchase specialized equipment from overseas to modernize their operations and enhance competitiveness. It’s a much-needed relief for these industries, according to PricewaterhouseCoopers (PwC) Canada tax specialists.
This measure will affect close to $2 billion in annual imports of machinery and equipment and provide over $440 million in savings for Canadian industry over the next five years.
Budget 2009 will also take steps to facilitate the movement of goods by improving the Customs Tariff rules respecting the treatment of temporarily imported cargo containers, and undertake consultations with respect to further liberalizing the use of these containers in Canada.
For more information and detailed commentary on the 2009 budget, visit www.pwc.com/ca/budget.