Retail Council welcomes budget

TORONTO — The Retail Council of Canada has expressed support for the federal government’s resistance of calls for a tax break on imported shipments. “Despite a relentless pre-budget lobby from foreign sellers and the U.S. air freight industry, the government understands the fundamental importance of tax fairness,” said Diane J. Brisebois, RCC’s President and CEO. Under de minimis rules, goods shipped into Canada by post and courier are exempt from all sales taxes and duties.  Increases in the current de minimis threshold would mean that goods sold by Canadian merchants would cost an average of 12.3% more after tax than those same goods shipped into Canada. Calls to raise the ceiling were sparked by recent boosts in the corresponding U.S. levels, but the comparison is “apples and oranges” according to RCC public affairs VP Karl Littler, who explained “the U.S. does not have a federal sales tax and does not collect state taxes at the border”.