The so-called “iPod tax” that the Harper government (possibly unwittingly) introduced in the 2013 budget has been removed.
Critics slammed the government in the spring of 2013 after it emerged a change to tariff rules meant thousands of electronic consumer goods that were entering the country duty-free would now have to have import tariffs slapped on them.
The Harper government initially denied it was a tax hike, arguing importers could still use an exemption clause to allow electronic goods to enter the country duty-free. But manufacturers like Sony begged to differ, and an import-export trade group even suggested Harper’s cabinet didn’t understand the impact of the change they were making.
Well it appears the government understands now. As Maclean’s reports, there’s been a quiet change in import tariff rules that allows those consumer electronics items to enter the country duty-free.
According to a notice on the federal government’s website, Canada Revenue will be paying back nearly $27 million in duties paid by 23 companies on imported electronic goods.
The NDP, which had campaigned heavily against what it called Harper’s “tax on everything,” praised the government’s move on Wednesday.
“It’s never too late to right a wrong. This tax was unfair to Canadian consumers, who were forced to pay more for their MP3 players,” NDP finance critic Nathan Cullen said in a statement.