Photo by: Canada Carbon
TORONTO (miningweekly.com) – The British Columbia provincial government on Tuesday extended its support for the provincial Mining Exploration Tax Credit (BC METC) through to January 1, 2020, and also renewed the BC Mining Flow-Through Share tax credit, which expired on December 31, 2015.
The projected fourth consecutive balanced provincial budget pegged the 2016 BC METC at its regular rate of 20% and reconfirmed the enhanced rate of 30% for areas affected by the mountain pine beetle. The tax credit had been originally set to expire on December 31, 2016.
Liberal Premier Christy Clark first revealed the proposed tax incentives during her remarks at the opening of the Association for Mineral Exploration British Columbia’s (AME BC’s) Exploration Roundup Conference on January 25.
“During this protracted downturn in the mineral exploration and development industry, companies need fiscal incentives that sustain grassroots exploration. These two important tax incentives allow companies to advance mineral exploration projects that could become mines and generate tax revenues in the future,” said the AME BC's chairperson, Diane Nicolson, in a statement on Tuesday.
These tax credits benefited both the company and the region where exploration dollars were being spent and enhanced mineral exploration companies’ ability to raise venture capital, especially during these tough times, stated Nicolson.
However, AME BC president and CEO Gavin Dirom urged the provincial government to work with the federal government to ensure that the tax incentives announced on Tuesday were complemented with changes to the definition of Canadian Exploration Expenses (CEE) to include costs incurred for environmental studies or community consultations related to mineral exploration.
“Currently, company expenses related to these important activities are generally not CEE-eligible,” advised Dirom.
“The incentives announced today will help sustain the industry during these challenging times while committing to a balanced budget. We thank the BC government for recognising the key role of the mineral exploration and development industry as part of a diverse provincial economy,” he added.
CLIMATE CRITICISM
Nongovernmental agency Pembina Institute reacted to the budget, stepping-up its criticism of what it termed the province’s “lack of direction” regarding climate change prevention.
“Today’s budget, unfortunately, continues the four-year stall in the province’s progress on climate action. The lack of direction is disappointing given the time the province has had to advance its ‘Climate Leadership Plan’,” stated Pembina’s British Columbia associate director Matt Horne.
“While we weren’t expecting the full details, we were expecting an indication of progress. For example, the budget could have indicated how the government will navigate the 2018 end of the carbon tax freeze, or how funds will be made available to pay for the investments that will need to be part of the plan.
“The premier talks about the importance of having the courage to say ‘yes’. With BC’s carbon pollution increasing, this government needs to quickly find the courage to say 'yes' to climate leadership,” Horne argued.