As noted, the idea behind measures being put in place to improve neutrality in the tax system is essentially to put the mining industry on an equal footing with other industries. Doing that involves removing some long-standing preferences in the tax system regarding the capital cost allowance system and the treatment of capital property.
These moves parallel changes that have already been announced and enacted in budget 2007 and budget 2011 regarding the oil sands sector. There were additional changes in budget 2012, including the phase-out of the corporate mineral exploration tax credit as well as changes to the Atlantic investment tax credit, which affected mining and oil and gas.
These further Canada's commitment under the G-20 to phase out inefficient fossil fuel subsidies as they affect oil and gas and also as they affect the coal mining sector as part of mineral exploration and extraction.