The Investment Industry Association of Canada (IIAC) commends the Finance Minister Jim Flaherty on “his responsible budget in difficult and uncertain times.”

Commenting on the federal budget released today in Ottawa, Ian Russell, IIAC president & CEO, said “Individual Canadians benefit from the announced Tax-Free Savings Account (TFSA), that provides another tool to help Canadians save. TFSAs not only supplement RRSPs, but provide a source of tax-assisted savings for other purposes.”

IIAC says today’s budget complements the steep reductions in federal corporate rates from 21 to 15% over four years, announced in the October 2007 Economic Statement.

Russell added, “Provincial governments now have a responsibility to match the federal business tax reductions, and harmonize with the GST, to achieve competitive tax rates for Canadian business. Timely provincial action is critical to help businesses, right across the country, hard-hit by economic circumstances.”

While the IIAC says it is pleased the federal government has expanded and enhanced the flexibility of Scientific Research & Experimental Development (SR&ED) credits, the measure will benefit only small private companies.

“We are disappointed that the budget has not provided sufficient incentives for small and mid-sized public and private companies to raise risk capital to improve competitiveness and seize expanding opportunities in domestic and global markets,” concluded Russell.