Montréal, October 22, 2014 – The Board of Trade of Metropolitan Montreal presents its recommendations to the Quebec Taxation Review Committee today. The President and CEO of the Board of Trade, Michel Leblanc, will emphasize the importance of increasing the competitiveness of Quebec’s fiscal framework and effectively supporting the most growth-generating and structuring sectors for the city.
More competitive taxation: essential for a competitive business environment
“Taxation review must go beyond balancing the budget, notably being achieved through $650 million in savings,” said Michel Leblanc, President and CEO of the Board of Trade of Metropolitan Montreal. “It must improve the competitiveness of the overall fiscal framework by offering greater incentives for work, investment and productivity.”
“We need to review the tax mix and adopt mechanisms that minimize any negative impact on wealth creation,” Michel Leblanc said. “The government has to gradually lower personal income tax and payroll tax to bring them more in line with the Canadian average. To finance public services and increase revenue, the government should focus on increasing the consumer tax rate and charges for public services.”
Taxation is a legitimate, effective and strategic economic development tool, particularly for the city’s high-value-added and most productive sectors
“Effective, targeted tax incentives are a great way of supporting the most productive sectors and those most vulnerable to international competition and attempts to lure companies south,” Mr. Leblanc said.
“The government has to concentrate efforts on businesses in a few strategic sectors, notably by keeping the tax credit for the production of multimedia titles, the tax credit for the development of e-business, the tax credit for film production services and tax credits for the financial and cultural industries,” Michel Leblanc said. “The government also needs to reform its tax support for R&D to lead to more innovation and subsequent commercialization.”
The Board of Trade’s recommendations are as follows:
- Rely more on user charges and the consumer tax to fund public services.
- Gradually reduce personal income tax and payroll tax to bring them more in line with the Canadian average.
- Reduce the corporate tax burden once the budget is balanced.
- Concentrate fiscal assistance on businesses in growth-generating, high-value-added sectors.
- Maintain tax credits that support strategic sectors: the tax credit for the production of multimedia titles, the tax credit for the development of e-business, the tax credit for film production services and tax credits for the financial and cultural industries.
- Reform tax support for R&D so that it leads to greater innovation and subsequent commercialization.
Consult the Board of Trade’s brief here (English to come).
About the Board of Trade of Metropolitan Montreal
The Board of Trade of Metropolitan Montreal is made up of some 7,000 members. Its mission is to represent the interests of the business community of Greater Montréal and to provide individuals, merchants, and local businesses of all sizes with a variety of specialized services to help them achieve their full potential in terms of innovation, productivity, and competitiveness. The Board of Trade is Quebec's leading private economic development organization.
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Source:
Michelle LLambias Meunier
Advisor, Media Relations
Board of Trade of Metropolitan Montreal
Tel.: 514 871-4000, ext. 4042
mllambias@ccmm.qc.ca
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