PDAC calls for lasting industry tax break as uncertainty looms

Canada is looking to secure an exploration credit as part of its tax system, with Raymond Goldie, the former president of the Prospectors and Developers Association of Canada, advocating for its inclusion. The importance of the Mineral Exploration Tax Credit in financing mineral exploration activities cannot be underestimated, according to Goldie.

Recently, the government made a commitment to extend the mineral exploration tax credit (METC) for an additional two years. However, the official approval has been delayed due to the prorogation of parliament when the announcement was made.

“The market requires stability,” stated Goldie during the PDAC event in Toronto. He emphasized the need for issuers to have clarity on whether the incentive will persist when seeking to raise capital. Current uncertainties around funding pose challenges for junior explorers, coupled with escalating costs. The annual renewal of the METC for relatively short periods introduces unnecessary risks for businesses. Establishing stable policies could foster increased investments in exploration, offering a more conducive environment for growth, Goldie argued.

Watch the full interview conducted by The Northern Miner’s western editor, Henry Lazenby below, to gain further insights into this matter.

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