Dedicated to helping Canada rebound from the impacts of the on-going COVID-19 pandemic, The Chemistry Industry Association of Canada (CIAC) delivered its pre-budget submission to the federal government on Friday, providing effective, realistic recommendations aimed at rebuilding the Canadian economy quickly, and in a cooperative manner.
The comprehensive paper outlines recommendations that ensure regulations stay in place to protect the health of Canadians and the environment while pushing for less red tape, R&D funding, and increased investment in chemistry and plastic industries which are essential to Canada—providing a nearly $70 billion to the Canadian economy in 2019.
“While Canada is showing signs of economic recovery, we remain well short of pre-COVID economic activity,” said Bob Masterson, President and CEO of CIAC. “Further progress is going to be difficult and hard-earned. The federal government must maintain a strict emphasis on economic recovery. There is no need to backtrack on current regulations, however, before introducing any new measures there must be evidence that those measures will contribute to and not detract from the much-needed economic recovery.”
Key recommendations in the pre-budget submission include:
- Extend the full 100% Accelerated Capital Cost Allowance with no phase-out until 2030 and make it permanent to offset the damage of the COVID-19 pandemic;
- Work with the provinces to maximize the impact of investment support programs by ending the taxation of investment support programs;
- Reform the SR&ED program to help foster R&D in Canada by raising the investment tax credit to 20% from the current 15% and eliminating or substantially raising the upper limit for taxable capital phase-out range from the current $50 million, reinstating capital expenditure eligibility that was phased out beginning January 1, 2013; and eliminating the 20% disallowance on arm’s-length consulting payments;
- Establish the Plastic Technology Innovation Fund (PTIF) with an initial allocation of $200 million, operated by Natural Resources Canada to further research and development of groundbreaking plastic technology applications in Canada.
With industries and all levels of government working in tandem toward the common goals of creating jobs and rebuilding the economy, CIAC believes Canada can have a bright, post-pandemic future.