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Tax cut in Canada as lumber prices rise
12/04/2010
Due to a steep rise in lumber prices on Friday, lumber tax in Canada will be cut from 15 per cent to 10 per cent from May 1, under the Softwood Lumber Agreement.
On Friday the price of lumber rose to US$342 per thousand board feet, up from US$328 the previous week. This is the highest price for lumber since the US-Canadian agreement was established in October 2008.
Chris McIver, vice-president of lumber sales at West Fraser Timber, the largest softwood lumber producer in North America, commented: "It's five per cent less tax that we are paying, which is significant." He added: "And it's the first time since the implementation of the agreement that we have not been paying 15 per cent, so that's a very big deal to us."
Under the terms of the agreement, the higher the price for lumber, the lower the tax rate. The aim of the agreement is to limit Canadian exports to the USA when pricing is weak.
The Forests Minister for British Columbia, Pat Bell, said that lumber prices are now high enough to make lumber profitable again.
On Friday the price of lumber rose to US$342 per thousand board feet, up from US$328 the previous week. This is the highest price for lumber since the US-Canadian agreement was established in October 2008.
Chris McIver, vice-president of lumber sales at West Fraser Timber, the largest softwood lumber producer in North America, commented: "It's five per cent less tax that we are paying, which is significant." He added: "And it's the first time since the implementation of the agreement that we have not been paying 15 per cent, so that's a very big deal to us."
Under the terms of the agreement, the higher the price for lumber, the lower the tax rate. The aim of the agreement is to limit Canadian exports to the USA when pricing is weak.
The Forests Minister for British Columbia, Pat Bell, said that lumber prices are now high enough to make lumber profitable again.
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