Industry sets sights on new target

"The mining industry is adjusting its sights to take a shot at the rising level of non-profit taxes which threaten to handicap the industry 's competitive advantage. In the case of this particular expedition, the industry evidentally has a strong ally - the country's mines ministers. It appears that an initiative is under way to assess the impact of non-profit taxes on mining in Canada as compared to other mining nations.IntroductionSeventy-five years ago, Canadians were unceremoniously introduced to something called income tax. Since then, income tax has been identified as the source of countless evils ranging from the common cold (attributed to stress) to the demise of the economy. Some years later, the provinces jumped on the bandwagon with their own income taxes, and later on with mining taxes. These profit-based taxes had some appeal to elected officials and to a segment of the populace. The onus of the taxes varied directly with the ability to pay (in theory, at least). Previously, the principal sources of government revenues had been property taxes and customs duties, which were viewed as possibly being somewhat regressive in nature.The mining industry has always had concerns about different aspects of income and mining taxes - the tax rate is too high or the depreciation rate is too low, and so on. Recently, though, the industry has turned its sights on the expanding array of taxes which are not based on profit, including payroll taxes, capital taxes, water taxes, sales taxes, fuel taxes, property taxes, environmental levies and user fees. The industry is seriously concerned that the rising level of non-pro fit-based taxes is not only hampering the industry 's ability to reinvest in Canada, but is also placing Canada at a disadvantage in terms of trying to attract new investment capital."