On July 11, CIAC submitted its recommendations on the 2018 pre-budget consultations to the Standing Committee on Finance. In the submission, CIAC highlights the importance of federal investment for the Canadian chemistry industry and how the federal government can help support the sector.
The global chemistry industry is a story of innovation and incredible growth, well in excess of global GDP growth rates. While provinces have prioritized the chemistry sector for economic growth, Canada has largely been unable to capitalize on the opportunity in the absence of dedicated federal focus. Bold and timely action by the federal government is urgently needed for Canada to capture the existing opportunities.
Key recommendations include:
- Increase federal investments in advanced manufacturing through program instruments, matching provincial commitments which have been made in support of projects approaching final investment decision in 2018
- Make the 10-year extension of the Accelerated Capital Cost Allowance (ACCA) permanent for manufacturing and processing and broaden the coverage of eligible capital assets to signal Canada is welcoming new investments in value-add resource upgrading
- Introduce a 100 per cent ACCA for a minimum of one full business cycle of seven years to specifically apply to upgrading resources into manufactured products
- Implement a special manufacturing and processing (M&P) tax rate in the form of a two-point M&P reduction to provide a stimulus for adding value to our natural resources
There is an urgent need for action in Budget 2018 to ensure Canada does not miss out on investments opportunities in the future. It will take bold measures to win new investments – but these investments will in turn provide long-term profitable growth for Canada that runs counter-cyclic to our resource-based sectors.
You can view the submission here: http://www.canadianchemistry.ca/library/uploads/2018_CIAC_Pre-Budget_submission_-_July_10_Final.pdf