[LeftCoaster]

Double good news for B.C. lumber producers: prices go up, taxes vanish
By The Canadian Press

VICTORIA, B.C. - B.C. lumber producers are getting a double dose of good news - prices are rising and the tax they pay to ship their product to the U.S. is disappearing on June 1.

Under the Softwood Lumber Agreement signed with the U.S. in 2006, softwood lumber taxes are tied to the average price of lumber, and when the price goes up the tax comes down.

Prices have now risen so much the tax will be eliminated entirely, at least for the month of June.

Forests Minister Pat Bell says that in two months the export tax has dropped from 15 per cent to zero.

He says although prices have softened over the last week and may continue to fluctuate, the loss of the export tax during June will leave companies with more cash to invest in their mills.

The tax will be reinstated if prices fall again.

http://www.canadianbusiness.com/mark...ent=b073801625