1995 Federal Budget — Targeting expenditures

CIM Bulletin, Vol. 88, No. 988, 1995

Robert B. Parsons, Partner, Price Waterhouse, Toronto

Finance Minister Paul Martin's second budget might be good for Canada's mining industry in the long run, but the budget raises a number of concerns for the industry in the near term. The budget papers suggest that the 25% resource allowance is not working as intended, and report that the Department of Finance will be reviewing this valuable allowance. The so-called "large corporations tax" rate will be increased. This annual tax, which is imposed on a corporation's capital even when the corporation is not in production, is particularly harmful to the mining sector.