Excise Tax on jewellery to be phased out

Importers and manufacturers of certain jewellery goods will see the amount of Excise tax paid on those goods reduced from 10 % to 8 % as of February 24, 2005. Budget 2005 proposes that the excise tax on jewellery be phased out through a series of rate reductions over the next four years.

The measure is in response to a study by the House of Commons Standing Committee on Finance relating to federal tax measures to help small businesses in certain sectors, including excise tax and duty relief for jewellers, small brewers and wine-makers, and measures to improve access to capital for agricultural cooperatives.

The list of products includes: jewellery (diamonds and other precious and semi-precious stones for personal use) and gold/silversmiths' products, clocks and watches, as well as articles made (in whole or in part) of natural shells and semi-precious stones. Over the next four years this tax will be phased out completely.

More information is available on the federal budget site:
http://www.fin.gc.ca/budget05/bp/bpc4de.htm