PwC Federal Budget instant reaction: Measures to help Canada compete will aid
the economic recovery

TORONTO, March 4 /CNW/ - PwC tax specialists commented today:

The Federal Budget announced today delivered new measures that are geared to improving Canada's financial position and competitiveness globally. Notable actions include:

    
      -  The lowest overall income tax rate on new business investment in the
         G7 (25% by 2012)
      -  Making Canada a tariff free zone for industrial manufacturers by
         eliminating all remaining tariffs on machinery and equipment and
         goods imported for further manufacturing - a savings of $300 million
         in annual duty for Canadian business.
      -  Improvements to Canada's system of international taxation to
         facilitate investment, cut red tape, and streamline the compliance
         process associated with the taxation of cross-border activity.
      -  Establishing a new Red Tape Reduction Commission.
      -  Enhancing the quality of the financial services sector.
    

These measures are designed to encourage local and new foreign investments in Canada.

A PwC Budget Flash with additional Budget highlights has been issued later today followed by a detailed Budget Memo later this evening. For more information and detailed commentary on the Budget please contact, Kiran Chauhan, [email protected], 416-947-8983 or visit www.pwc.com/ca/budget.

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For further information: Kiran Chauhan, [phone], [email protected]