The federal budget has approval from the Forest Products Association of Canada.
The federal budget has approval from the Forest Products Association of Canada.
“The industry is very encouraged by these measures which will help stimulate and reward capital investment in Canada,” said FPAC president and CEO Avrim Lazar. “[They] are a welcome first step in addressing the tax disadvantage that the Canadian forest products industry currently faces against its international competitors. These measures build on the momentum created through the resolution to the long-standing softwood dispute.”
The commitment to addressing particular problems within the sector, such as the Mountain Pine Beetle, combined with direct measures to eliminate the capital tax, the corporate surtax and reduce the corporate tax rate to 19%, were all well received by the association. “[These] are very clear indications that the government understands the challenges presently facing the industry,” Lazar said.
FPAC said it welcomes the opportunity of working with the government, and identified several recommendations, including tax parity among natural resource sectors, a more efficient regulatory system and an emphasis on market development and branding of Canadian products.
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