Email Re: Resolution regarding Southern Interior Local Government Association GST Carbon Tax
A letter from the Mayor of Vernon regarding an ePetition to remove GST being charged on the Carbon Tax.
From: Maria Doyle Sent: March-29-17 3:55 PM Subject: PETITION TO REMOVE GST BEING CHARGED ON CARBON TAX
Dear Mayor, Chair, Councillor, Electoral Area Director
Recently, Councillor Bob Spiers brought to our Council’s attention the practice of the Federal Government applying Goods for Services Tax (GST) on the Provincial government’s Carbon Tax. This is not GST applied on the “goods” (gasoline, natural gas, propane, diesel fuel) rather it is GST applied on the Carbon Tax. Essentially, a Tax on Tax.
This Tax on Tax affects British Columbians across the Province and in some manner affects every resident, business, and visitor in our respective municipalities. Folks we represent.
In 2016 the Federal Government collected $63 million of federal taxes imposed on BC’s carbon tax. The Federal Government will collect many times this amount across Canada as more Provinces apply a Carbon Tax, ironically at the strong insistence of the Federal Government.
Councillor Spiers has initiated an ePetition to the House of Commons to remove the GST on Carbon Tax. The subject ePetition is now before the Parliament of Canada. The ePetition does not question the Carbon Tax. It is focused on the imposition of a tax (GST) on a tax.
I have attached a resolution, passed by our Council which has been submitted to the Southern Interior Local Government Association for consideration at their Annual Convention in April. The resolution has also been forwarded to the Union of British Columbia Municipalities and to the Federation of Canadian Municipalities.
On March 20, 2017, Mark Warawa, MP for Langley-Aldergrove and Mel Arnold, MP for North Okanagan-Shuswap have introduced a bill in the House of Commons that seeks to eliminate the charging of GST on existing and future carbon taxes.
To be successful, to reduce the weight of taxation on our residents, requires individual action. We are not seeking Council or Board action. We are encouraging Councillors, Electoral Area Directors, Mayors and Chairs from across BC to become aware of the issue. If, as individuals, you feel the imposition of a federal tax on top of a provincial tax is unwarranted – I would ask you to act, to sign the ePetition.
The online petition closes May 3, 2017 at 1:32pm (EDT) and may be accessed at https://petitions.parl.gc.ca/en/Petition/Details?Petition=e-713
Regards,
Mayor Akbal Mund
RESOLUTION OF COUNCIL
At their March 13, 2017 Regular meeting, Vernon City Council passed the following resolution in respect to Federal GST Charges on Provincial Carbon Tax:
“THAT Council endorse the resolution as presented and direct the Clerk to submit the resolution with the background statement to the Southern Interior Local Government Association (SILGA);
“WHEREAS the Government of British Columbia instituted a “carbon tax” in 2008;
AND WHEREAS, the Government of Canada imposes GST on the “carbon tax”, essentially a tax on tax;
AND WHEREAS, the carbon tax and subsequently the GST on the carbon tax applies widely on carbon tax fuels and affects the cost of living for British Columbians;
NOW THEREFORE BE IT resolved that SILGA and UBCM lobby the provincial and federal governments to eliminate the GST being charged on the provincial carbon tax.”
CARRIED.
The undersigned hereby certifies the above resolution to be a true copy of the resolution passed by Council of the City of Vernon on March 13, 2017
Susan Blakely, Deputy Corporate Officer The Corporation of the City of Vernon
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