Yellowknife News
Big benefits expected from end to jewelry tax
Last updated Jun 17 2005 08:54 AM CDT
CBC News
YELLOWKNIFE – People watching Canada's diamond industry are hailing Parliament's decision to abolish the 10 per cent excise tax on jewelry this week.
The Liberal government had planned to phase out the jewelry tax over the next five years.
But Conservative MP John Duncan introduced a private member's bill in the House of Commons last year to eliminate the surcharge completely on all jewelry that's purchased in Canada.
The tax has long been criticized by the jewelry industry as a cash cow for the federal government.
Duncan says his bill brings good news for people who buy jewelry.
And it will also help jewelry retailers and artisans.
"This is good news on several fronts," he says. "I mean obviously the value-added industry is not going to have the yoke of this tax and it will be the catalyst for the creation of a true Canadian branding of a specialty industry that we'll do very well at."
The territorial government and the mining industry also lobbied to have the excise tax removed.
Great Slave MLA Bill Braden helped co-ordinate the N.W.T.'s lobbying efforts in support of the bill.
"You know one of the differences with this excise tax in place you could go and buy a Canadian diamond, that was manufactured here in Yellowknife, cheaper in the in United States than you could buy it here in Yellowknife," he says.
"You know, if that's not backwards then give me a break."
The bill was supported by the three opposition parties and 30 Liberal members.
Ethel Blondin Andrew voted against the bill despite calling for an end to the tax in earlier statements.
The two other northern MPs, both Liberals, supported the bill.