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Wednesday, April 17, 2013

Bicycles and Bike Parts prices to go up

The Conservative government of Canada and Finance Minister Jim Flaherty are raising taxes (tariffs) on bicycles and bicycle parts being imported to Canada.

Canada annually imports $125 million in bicycles from the 72 countries covered by the increase.

The Conservatives are raising tariffs to 13 per cent from 8.5 per cent, which will result in a price increase of roughly 4.5%.

The tariff tax increase is part of a larger plan by the Conservatives whereby imports from 72 countries will be increased.

In 2012 Finance Minister Jim Flaherty trumpeted the benefits of his budget in October 2012 by announcing various budget measures in a bicycle shop, the Joe Mamma bike store in Ottawa. This year Jose Bray, owner of the Joe Mamma bike store, says he feels misled by Flaherty.

In October 2012 Flaherty declared that he would not raise taxes and would give small businesses a tax credit.

But instead Flaherty has increased taxes, by way of new tariffs that he says will increase prices for a number of consumer products, including bicycles.

Pensioners and Native Canadians are also getting the proverbial shaft with the new budget.

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