The Canadian government led by a conservative majority has repealed the 10 percent jewelry excise tax as part of the government’s budget that was approved Wednesday.
The Canadian Jewellers Association applauded the move in a statement issued Wednesday.
“We are delighted that the Conservative government has ended the inequity and confusion inherent in the Excise Tax,” said Morris Robinson, chair of CJA’s Government Relations Committee.
Robinson said that the CJA’s invitation to attend the highly confidential “watch” session on Wednesday was a strong indicator that the news would be positive. “The process is quite fascinating, no cell phone use, locked in a room with other invitees and the media with no external conversation until the budget is read,” Robinson said.
The Budget text reads as follows, “Originally conceived as a tax on luxury goods, this characterization is no longer valid. Jewellery is available at all price levels and is purchased by a wide range of Canadian households. Repeal of the Excise Tax will recognise this and ensure that the Canadian jewellery industry is able to compete on a fair and equitable basis with other retail and manufacturing businesses in Canada. It will also serve to reduce the compliance burden on the jewellery industry, a particular benefit to small businesses.”
Repealing the excise tax on jewelry will cost $80 million over two years.