Miners seek exemption from Canadian tax hike to save equity deals – by Jacob Lorinc (Bloomberg News – May 10, 2024)


Canada’s mining industry is pushing for an carveout to the federal government’s proposed increase to capital gains taxes, warning the hike will make it harder for junior miners to raise money to find new mineral deposits.

Finance Minister Chrystia Freeland’s new budget includes a measure to raise the capital gains tax inclusion rate to two-thirds from one-half. It applies to all gains made by corporations and trusts, and to individual taxpayers on gains over $250,000 in a year.

For many investors, the tax hike would “significantly reduce” the value of a measure called the Mineral Exploration Tax Credit, or METC, which is designed to help companies raise money to explore for critical minerals like copper, nickel and lithium, according to the Mining Association of Canada.

For the rest of this article: https://www.bnnbloomberg.ca/miners-seek-exemption-from-canadian-tax-hike-to-save-equity-deals-1.2071529