Jim Flaherty explains why he increased tariffs - Macleans.ca

Jim Flaherty explains why he increased tariffs

About that iPod tax…


In an op-ed for the Globe, Finance Minister Jim Flaherty suggests the tariff increases are part of pursuing new trade agreements.

The recent changes will provide an important incentive for many countries to open their markets to Canada through reciprocal trade agreements that will allow for more export opportunities – meaning better jobs for Canadians – and further tariff reductions for Canadian consumers.

Mr. Flaherty also offers an assurance about imported iPods.

Finally, due to recent confusion, I want to be clear that the changes had no effect on iPods and other music devices and their special and long-standing tariff-free exemption.

Mike Moffatt responds to that much with a question.

My question to the Minister (or to the CBSA or whoever would like to answer):How can retailers receive this exemption? What steps do they need to take to qualify?

I detail the current CBSA enforcement of the 9948 exemption in my tariff FAQ.    I am having trouble reconciling the Minister’s statements with the fact that Sony has already paid an iPod tax.

It’s been a week since I asked the government to explain the exemption—specifically: Is it true that sellers of iPods and MP3 players are required to collect “end use certificates” from the final consumer to meet the requirements of 9948? I’ve renewed my request just now.

See previously: A tax on imported blanketsThe Commons: Ted Menzies challenges everyone to find a tax increase in the budgetA tax on bicycles, baby carriages and iPodsThe Great iPod Tax Crisis of 2013The iPod tax: The finance department responds and Will the Conservatives repeal the iPod tax?