Phase-out of the Excise Tax on Jewellery, Clocks, Watches, Goldsmith's and Silversmith's Products
The Excise tax on jewellery products, which has been in effect in some form since 1918, is being phased-out over four years. Currently, persons manufacturing or producing the above goods valued at in excess of $50,000 in a calendar year, must hold a federal Excise tax licence. They are also required to file returns and remit the Excise tax imposed on such articles.
Effective February 24, 2005, the current rate of Excise tax is reduced from 10% to 8%. Furthermore, this rate will be reduced by an additional 2% on each March 1 beginning in 2006, until March 1, 2009, at which time the Excise tax on jewellery products will be eliminated. This tax is payable at the time that such goods are imported into Canada, or are delivered to a customer in Canada from a licensed manufacturer, producer or wholesaler.
As someone who's purchased a lot of the above hardware recently, this is a welcome relief! The only downside is that they have already been delivered to me so I will not benefit :(
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Posted
on March 9, 2005 7:58:30 CST PM