Feds eliminate remaining machinery, equipment tariffs
Latest round of tariff cuts expected to generate $450 million in tax savings for manufacturers.
machinery and equipment
OTTAWA — The federal government has eliminated any remaining tariffs on machinery, equipment and inputs such as screws, electric motors and pipe fittings for the manufacturing sector, a measure that expected to benefit Canadian businesses by lowering import costs on goods used to produce manufactured goods.
The tariff elimination measures, which were first announced in the 2010 federal budget, were expected to create up to 12,000 jobs.
Since 2009, more than 1,800 tariffs have been eliminated in the manufacturing sector.
The latest tariff elimination will specifically benefit small and medium-sized businesses that rely on global supply chains and are looking to diversify their export markets by providing up to $450 million in annual tax relief.
Canada is the first G20 nation to eliminate all tariffs on machinery, equipment and inputs used in the manufacturing sector.