On March 21, 2013, the Minister of Finance tabled the 2013
federal budget, Economic Action Plan 2013. There are announced
changes which will be of particular interest to the mining
sector.
Phasing Out Tax Preferences for Capital Expenditures in
the Mining Sector
Economic Action Plan 2013 proposes to phase out the accelerated
capital cost allowance for capital assets used in new mines and
major mine expansions and to reduce the rate at which
pre-production mine development expenses may be deducted for tax
purposes.
In 2006, the Government committed to examine opportunities to
make the tax system more neutral across sectors to help ensure that
investment is directed toward its most productive uses. The
Government further committed in 2009, along with other G-20
countries, to "rationalize and phase out over the medium term
inefficient fossil fuel subsidies." In support of these
commitments, the Government took action in Budget 2007 and Budget
2011 to phase out all
