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Putting Parliament on hold puts mining tax credits in question

Mineral exploration companies rely on 'temporary' tax credit to be passed in budget
Nelson Bennett
Nelson Bennett
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Proroguing Parliament puts government activities on hold, including budget.Pgiam/iStock/Getty Images Plus/Getty Images

While some Canadian businesses may welcome the news that Prime Minister Justin Trudeau is stepping down, some are not so happy with the proroguing of Parliament, as it may have negative impacts for some sectors, including introducing uncertainty over tax credits expected in the next budget.

Trudeau announced Monday he will be stepping down, and has asked the governor general to prorogue Parliament until March 24.

One implication of this is a delay in passing the next federal budget, which casts uncertainty over things like business tax credits.

The Association of Mineral Exploration (AME) is worried about the fate of the mineral exploration tax credit, which is a “temporary” tax measure that has been continuously extended an annual basis in the federal budget for more than two decades.

The AME has long advocated for making the tax credit permanent.

The budget would normally come down in April, but the proroguing of Parliament puts all parliamentary business on hold, which puts the fate of the tax credit in question for 2025.

“The current political situation is unhelpful for mineral exploration, as it further delays the renewal of the mining exploration tax credit (METC),” Richard Truman, the AME’s senior director of external affairs, said in a written statement. “AME continues to call on the federal government to make METC permanent.”

Prorogation of Parliament also creates uncertainty at a time when Canadian business face the prospects of crippling tariffs from U.S. president-elect Donald Trump.

“As it stands, Canada is ill-prepared to tackle the threat of tariffs proposed by Donald Trump, who is set to take office on January 20,” the AME said in its statement. “Shutting down government is not the correct way to address this.”

The Surrey Board of Trade echoes those concerns.

“The prorogation of Parliament is a significant concern for the Surrey Board of Trade, as it will terminate essential committees like the US-Canada Relations Committee, at such a pivotal time,” the business association said in a press release.

“This committee plays a vital role in fostering strong economic ties between our two countries, and its dissolution will undoubtedly hinder progress on key trade and economic initiatives.”

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