Canada’s chemical industry presses for extension of key tax measure

20 October 2010 16:12  [Source: ICIS news]

TORONTO (ICIS)--Canada’s chemical industry wants the government to extend by five years a tax measure “critical to the survival of Canadian manufacturers”, a trade group said on Wednesday.

The Chemistry Industry Association of Canada (CIAC) said it was calling for a five-year extension of the accelerated capital cost allowance (ACCA) for new machinery and equipment.

The measure was first introduced in 2007 and is due to expire at the end of 2011. It allowed producers to defer the taxes they pay at the beginning of a project - when cash flow was most urgently needed - until a later date, the group said.

"A five-year extension of the ACCA is critical for Canadian manufacturers," said CIAC president Richard Paton.

"Investing in new machinery and equipment will make our manufacturers more productive and competitive, will foster innovation and reduce emissions, and will ultimately make our manufacturing sector more sustainable," he said.

Ottawa-based CIAC represents over 50 chemical companies with combined revenues of Canadian dollar $26.0bn ($25.5bn)/year.

Major chemical firms with production in Canada include NOVA Chemicals, Dow Chemical, Shell, MEGlobal, DuPont Canada, LANXESS, Invista, and ExxonMobil’s Canadian Imperial Oil affiliate, among others.

($1 = C$1.02)

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By: Stefan Baumgarten
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