Post by fastwalker on Sept 28, 2004 21:51:22 GMT -5
FYI..Informational.....Canadian Diamond Tax Reform Expected To Be Delayed
(September 28, '04, 5:44 Albert Robinson)
The Canadian government is unlikely to soon adopt vital tax changes recommended in a report on ways of developing the country’s diamond sector, according to a federal government official.
There is strong industry support for abolishing excise tax on jewelry and encouraging Canadian diamond manufacturing via royalty incentives but neither reform will be adopted in the near future, said Bob Paget, of the Indian and Northern Affairs ministry.
The governments of the Northwest Territories and Quebec published a national diamond strategy on Friday prepared on behalf of all the country’s provinces and territories.
Among its recommendations are dropping the excise tax on jewelry, which jewelers say makes Canadian diamonds cheaper to buy overseas than at home.
In addition, the report says a scheme that helps junior mining companies raise money for exploration should be made permanent, and that diamond manufacturing should be encouraged by royalty and tax incentives.
The Indian Affairs ministry has pushed for the abolition of the excise tax issue for the past six years as well as the scheme to raise exploration money but without success, Paget said.
The federal government is even more unlikely to adopt the changes since it was not consulted during the writing of the report despite all the recommendations involving the central government.
Mike Vaydik, of the N.W.T. and Nunavut Chamber of Mines, said many of the proposed changes would inevitably not be adopted without the federal government’s input and support.
One of the main proposals in the report, aimed at advancing a coordinated approach to Canada's growing diamond trade, is the setting up of a national diamond council to deal with overarching issues, such as diamond certification, security and the training of diamond manufacturers.
Such a council would include representatives from provincial governments, diamond firms, aboriginals and a variety of non-governmental organizations.
