Manufacturers in B.C. that are classified as light industry are losing a tax credit that in the past has reduced their school tax levies.
According to the B.C. region of the Canadian Manufacturers and Exporters (CME), the provincial Industrial Tax Credit, which is applied to the annual school board levy, has been reduced by 50% for 2013 and will be eliminated next year.
B.C. manufacturers only became aware of the change when they started receiving their 2013 tax statements. The CME says the changes were made without consultation with the affected sectors.
The reduction only applies to light industry, the CME said in a press release. Agricultural land will still get a 50% credit and heavy industrial properties (mining, lumber and pulp mills) will continue to get a 60% credit.
“Add this to the impact of the re-introduction of the PST and increasing Hydro rates, B.C. is increasingly becoming a less competitive location to run and situate a business,” the CME press release states.
“Increasing taxes and eliminating credits for light industry continues to send a discouraging message to manufacturers in B.C. Unfortunately this message also seems to run counter to the government agenda to support business, grow the economy and create jobs.”
