Quebec mining duties reform

"The 1994 Quebec Budget included a significant overhaul of the mining duties sys-tem in that province: broadening the base and lowering the rate, all in the name of “ensuring the integrity of the taxation system"" and ""enabling the State to collect fair compensation "". The reforms hit hardest on the small, lightly-capitalized producer, by repealing the basic annual exemption, limiting the refund for losses, and significantly reducing the investment and processing allowances. There is some relief provided in the form of faster depreciation rates and a lower nominal tax rate, but the thrust of the overhaul is clear -higher taxes on the mining sector.IntroductionAlthough Quebec's mining tax regime represents under 10J0 of the province's revenue base, and was significantly reformed in 1979 and 1985, the May 13, 1994, provincial budget introduced further significant changes to the Mining Duties Act, The hope (on the part of the province) is to reduce the provincial ""subsidy"" for mining by $20 mil· lion per year by 1996."