ICCC Welcomes Growth-oriented Budget
By A Correspondent
The Indo-Canada Chamber of Commerce (ICCC) has welcomed the first budget of the Liberal Government presented by Finance Minister Hon. Bill Morneau Tuesday in Ottawa. In a statement issued in Toronto on Thursday, Sanjay Makkar, President, ICCC, said the budget focuses on the middle class, and will provide an impetus to economic growth, job creation, investments in infrastructure, expansion of health care, boost to clean technology, higher education, innovation in manufacturing and services.
The ICCC President added that the Liberal government’s decision to freeze the tax rate for small businesses will prove to be impediment to the vibrant small and medium sector that is the backbone of the Canadian economy. “During the last decade, the Indo-Canada Chamber of Commerce has emerged as a strong advocacy group for Canadian small businesses,” Mr. Makkar said.
He emphasized that while the rate is lower than the 15-per-cent general corporate rate but Ottawa will cancel a legislated reduction to 9 per cent, adopted by the former government. In addition, the previously announced reductions to the corporate income tax rate applicable on small-business income of a Canadian-controlled private corporation (CCPC) have been removed.
In the budget Finance Minister Morneau indicated the tax rate on businesses earning less than $500,000 a year will remain at 10.5 per cent. Mr. Makkar said the Budget 2016 includes a number of measures to support economic growth, including investments to help Canadians obtain skills and training for well-paying jobs and by accelerating business growth through support of science, research and clean technologies. “These are all welcome measure,” he said.
The Indo-Canada Chamber of Commerce has been in the forefront of recognizing the significance of education in human development and as an important segment of trade in services. The Chamber wholeheartedly welcomed the allocation of over $2billion over three years, starting in 2016-17, for a new Post-Secondary Institutions Strategic Fund to support up to 50% of the eligible costs of infrastructure projects at post-secondary institutions and affiliated research and commercialization organizations, in collaboration with provinces and territories.
Innovation in manufacturing and energy production is the key to the future economic growth, and during the last five years, the Indo-Canada Chamber of Commerce has played a pivotal role in promoting collaboration between Canadian and Indian companies in the sphere of innovation in clean technology. Mr. Makkar said the Budget 2016’s allocation of up to $2billion to support clean technology research, development and demonstration activities is an important measure.