Carbon price not exempt from GST

Ottawa doesn’t intend to account for GST revenues in its rebate program

The federal government’s impending national carbon price could bring in more than $250 million in GST revenues next year but Ottawa doesn’t intend to account for those funds in its rebate program.

A 2017 analysis by the Library of Parliament said that if the GST were charged on all of the revenues collected from existing carbon levies in British Columbia and Alberta it would add as much as $150 million to Ottawa’s coffers.

The same analysis applied to the $20-a-tonne carbon levy Ottawa will impose on Saskatchewan, Manitoba, Ontario and New Brunswick next April suggests the GST on the federal levy in those provinces could be as much as $118 million a year.

RELATED: B.C. carbon tax now costs more than natural gas it is charged on

The parliamentary researchers warned that the final tally will depends on what costs are passed on to consumers from businesses. Also, some items, such as basic groceries and pharmaceuticals, are exempt from GST, so if the carbon levy raises their prices it won’t lead to more sales-tax revenue.

The federal government promises the carbon levy will be revenue-neutral but the Liberals have already defeated a private member’s bill from Conservative MP Mark Warawa that would have exempted the carbon levy from the GST.

RELATED: Carbon tax, sales tax breaks finally make B.C. LNG happen

A spokesman from Finance Canada says the government doesn’t believe the revenues from the GST will alter the government’s take much because the money consumers spend on the GST on carbon levies would likely have just been spent on other taxable goods.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Air ambulance called to scene after report of shots fired in Abbotsford

Incident Monday afternoon in the area of Ross and Simpson roads

Chilliwack pauses to remember

Services held special significance, marking the 100th anniversary of the end of the First World War.

B.C. Legions in need of young members to continue aiding veterans into the future

Lest we forget what thousands of men and women did to fight for Canada’s freedoms – but without new membership, many Legion chapters face dwindling numbers

Early morning bagpipe playing at Chilliwack memorial on Nov. 11

Piper Greg McCormick taking part in international Battle’s Over tribute at Piper Richardson statue

VIDEO: Marvel Comics’ Stan Lee dies

Marvel co-creator was well-known for making cameo appearances in superhero movies

Surging Rangers beat visiting Canucks 2-1

Goalie Lundqvist ties Plante on all-time wins list

Calgary 2026 leader expects close vote in Winter Games plebiscite

Residents to choose in a non-binding vote on Tuesday whether they want city to bid on 2026 Olympics

VIDEO: Newcomer kids see first Canadian snowfall

Children arrived in Canada with their mother and two siblings last week from Eritrea

Feds dropped ball with WWI anniversary tributes: historians

Wrote one historian: ‘Other than the Vimy Ridge celebration … I think they have done a very bad job’

Sides ‘far apart’ in Canada Post talks despite mediation, says union

The lack of a breakthrough means rotating strikes will resume Tuesday

Feds’ appeal of solitary confinement decision in B.C. to be heard

Judge ruled in January that indefinite such confinement is unconstitutional, causes permanent harm

Touching note left on Lower Mainland veteran’s windshield

A veteran is hoping the writers of a note know how much he was touched by their kind words.

BCHLers on NHL Central Scouting players to watch list

The list includes seven current BCHL skaters

Most Read