Wednesday, January 04, 2017

TAX on TAX (GST being charged on Carbon Tax)

PETITION now available for your consideration at
https://petitions.parl.gc.ca/en/Petition/Details?Petition=e-713
This Petition that will be tabled in the House of Commons will remain open for signatures for 120 days. To receive final certification, an e-petition must receive a minimum of 500 valid signatures during this period.The Standing Orders (the rules governing the House of Commons) require the government to respond within 45 calendar days to every petition presented in the House of Commons.

 The Petition is open for signature until May 4, 2017, at 1:32 p.m. (EDT)

Petition to the Government of Canada
Whereas: The B.C. government instituted a CARBON TAX in 2008 and the Federal Govt GST TAX (currently at 5%) is still being charged on this Carbon TAX

We, the undersigned, Citizens of Canada, call upon the Government of Canada to eliminate the GST being charged on this or any other future Carbon Tax enacted by the Provinces or Territories. No more TAX on a TAX.
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Don Quixote Note:
Look at your gas bill. You are being charged Carbon Tax on your Natural Gas Delivery and Commodity amounts. Look a little closer and you will see that the Federal Governments charges GST on Your Carbon Tax. A TAX on a TAX. (Pity, only in Canada).


The 2016/17 B.C. govt latest projection of Carbon Tax revenue was $1.271 Billion. The 5 % GST on BC Carbon Tax is a tax grab of $63.5 million. The 2013/14 Carbon tax revenue was $1.212 Billion,the 2014/15 was $1.228 and 2015/16 was $1.248.

The Carbon Tax is supposedly revenue neutral in B.C. since 2008 but the GST is being shipped out of this province to the Federal Coffers since 2008.

The Alberta Government has announced a carbon tax starting Jan 1, 2017 and minimum estimates of GST on gasoline and diesel alone are said to be approx $39 million.
https://www.osler.com/en/resources/regulations/2016/alberta-s-carbon-tax-bill-20-the-em-climate-le








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Whatever model a province chooses, Trudeau said, it will be revenue neutral for the federal government, with any revenues generated under the system staying in the province or territory where they are generated.

This promise if kept indicates the removal of the GST on any future Carbon Tax. (Promise made, Promise Kept ??)

Maybe the answer will be given to remove the GST on the Carbon Tax before the 120 day petition period is finalized and is tabled for a written response from the Government. (And Pigs can fly)


Some posts of interests re this TAX on a TAX:
http://vernonblog.blogspot.ca/2016/12/carbon-tax-revenue-in-bc-gst-charged-by.html

http://vernonblog.blogspot.ca/search/label/carbon%20tax
(44 posts in Carbon Tax category. 2008-2016)

Pursuant to Federal legislation, only PST, Hotel Room Tax and Property Transfer Tax are not subject to GST. Any taxes under new provincial statutes are subject to GST by default.


 http://www.sbr.gov.bc.ca/documents_library/bulletins/mft-ct_005.pdf  P.17
Example – Tax Calculated on Heating Oil for Commercial Purposes Heating oil (fuel oil) purchase price per litre (excluding tax) $1.0000
Carbon Tax (cents per litre) .0767
PST (7% of the purchase price) .0700
ICE Fund Tax (0.4% of the purchase price) .0040
Total purchase price per litre $1.1507

Goods and Services Tax (GST) You calculate the federal GST as a percentage of the purchase price of the fuel. Any applicable carbon tax or motor fuel tax is included in the purchase price for the purposes of calculating GST. PST is not included in the purchase price for the purposes of calculating GST.
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Clear Gasoline Tax Rates per Litre  P.5 Carbon Tax 6.67¢
Clear Diesel Tax Rates per Litre P.6  Carbon Tax 7.67¢

Fill up your vehicle with 8o litres will cost you $5.34 for carbon tax and then the Feds will rake off 27 cents in GST.

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