A punitive tax on Canadian jewelry manufacturers has been repealed.
The Mining Association of Canada joined the Canadian jewelry sector in celebrating the immediate repeal of the Jewelry Excise Tax. The act to amend the tax was a private members bill and received Royal Assent last week.
The tax was called outdated, unfair and uncompetitive and was seen as punishing Canada's jewelry manufacturers and sales, a spokesman said.
The development of Canada's diamond industry added momentum to the campaign and in the February budget the federal government announced a phase-out of the tax - Bill C-259 repeals it immediately.
''The repeal of this tax benefits Canadian consumers,'' said Gordon Peeling, MAC's president and CEO, ''and it also benefits Canadian producers of the raw materials that go into jewelry--diamonds, gold, silver, platinum and gem minerals, by removing a disincentive to the purchasing of Canadian jewelry products.''
Based in Ottawa, the Mining Association of Canada is the national organization for the Canadian mining industry. Its members are engaged in mineral exploration, mining, smelting, refining and semi-fabrication.