Tax changes will help spur investment to grow Canada’s economy, Business Council says

The Business Council of Canada welcomes today’s decision by the Government of Canada to allow temporary full expensing for investments in machinery and equipment, as well as accelerated expensing for all other types of capital investment.

The new measures will partially offset the negative impact on Canada’s economy of recent U.S. tax changes, while creating incentives for Canadian companies to make new job-creating investments.

“Private-sector investment is the key to Canada’s future prosperity and a high quality of life for all Canadians,” said Goldy Hyder, President and Chief Executive Officer of the Business Council. “By taking concrete action now to make Canada a more attractive place to invest and do business, the government can set the stage for stronger growth, higher middle-class incomes and a better future for Canadians of all ages, abilities and backgrounds. Economic growth drives the tax revenues that are required to pay for health care, hospitals, schools and other services that are essential to a healthy and productive society.”

“However, we all need to recognize that Canada’s competitiveness challenges go much deeper than any single tax measure. We will continue to urge the government to adopt a comprehensive strategy to foster business confidence, attract investment and enable the creation of new, high-value jobs.”

The Business Council of Canada is a non-profit, non-partisan association composed of the chief executives and entrepreneurs of 150 leading companies, representing a wide range of industry sectors and all regions of the country. Member companies employ 1.7 million Canadians, contribute the largest share of corporate tax and are responsible for most of the country’s exports, corporate philanthropy, and business investments in research and development.

Mr. Hyder gave credit to the government for announcing an Export Diversification Strategy aimed at increasing Canada’s overseas exports by 50 per cent by 2025. New investments in the Trade Commissioner Service – and funding to help small and medium-sized firms explore new markets – will enable more Canadians to take advantage of recently negotiated trade agreements.

The Business Council is also encouraged by the government’s commitment to “immediate action” to improve the regulatory environment in several key sectors, including agri-food and aquaculture, health and biosciences, and transportation and infrastructure.

“Reducing the regulatory burden is essential in making Canada a more attractive destination for jobs, investment and innovation,” Mr. Hyder said. “The plan outlined today is ambitious, but what really matters is implementation.”