As Canada’s Minister of Finance Jim Flaherty Tuesday tabled his Economic Action Plan of 2014, he committed to a balanced federal budget in 2015.
RENO (MINEWEB) – Two prominent Canadian mining organizations Tuesday hailed Minister of Finance Jim Flaherty’s Economic Action Plan 2014, which extends a mining exploration tax credit. Economic Action Plan 2014 proposes no new taxes on Canadian businesses and projects the country’s deficit will decline to C$2.9 billion in 2014-15. A C$6.4 billion budget surplus is anticipated in 2015-16.
The Association for Mineral Exploration BC (AME BC) said it welcomed the extension of the Mineral Exploration Tax Credit contained within the federal budget. David McLelland, chair of AME BC, said, “Many of our members are having difficulty raising capital in these financially challenging times, and the renewal is much appreciated.”
The Mineral Exploration Tax Credit increases exploration financing through providing individuals who invest in companies that are exploring for minerals in Canada with a 15% tax credit on eligible expenditures. The tax credit was first introduced in the year 2000, has been extended since then and was set to expire on March 31, 2014. The government has proposed to extend the credit until March 31, 2015.
“In future budgets, we would further recommend making the tax credit permanent to facilitate grassroots exploration programs to aid in the discovery of new mineral deposits while contributing to steady, high-paying jobs in communities throughout the country,” said McLelland.
The Mining Association of Canada (MAC) congratulated the federal government “for its continued progress towards a balanced budget, with a larger than expected surplus projected for 2015-16.”
“The Canadian mining industry applauds the federal government’s extension of the 15 percent Mineral Exploration Tax Credit (METC) for an additional year, an important tax incentive for the junior exploration sector,” said the association. “Its renewal is critical at this time, given the continued challenging economic environment faced by Canada’s junior mining sector.’’
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