Toronto/CMEDIA: A suite of measures reportedly have been outlined by the federal government to boost investment in Canadian auto manufacturing.
Besides dropping the electric vehicle sales mandate and restarting an electric vehicle rebate program, the Canadian government is also increasing funding, reducing taxes and adjusting its tariff remission program, Canada’s Prime Minister Mark Carney said.
While speaking in Vaughan, Ont today, Carney said up to $3 billion from the Strategic Response Fund would be dedicated to support investment in auto manufacturing and $100 million from the Regional Tariff Response Initiative.
Canada is also planning to launch consultations to discuss strengthening an existing program to reward automakers who maintain their Canadian production footprint with tariff exemptions on imports from the United States.
Also planning to expand the remission program into a tradable system, said Carney, to accredit those who invest in Canada, and require those that don’t to buy those credits to avoid tariffs.
He also promoted tax measures and announced in its last budget that will make the country’s lowest marginal effective tax rate 4.5 percentage points below the United States.
