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

VIDEO: Williams Lake Indian Band getting fast internet in 2020

The provincial government announced Monday it is contributing $177,000 of the $345,000 project costs

Big Creek meeting attracts 50 residents impacted by recent flooding

Representatives from various agencies were on hand to field questions and concerns

Dasiqox Tribal Park management plan development eyed

Proponents hope to have management approach and action plan completed in next three to five years

CASUAL COUNTRY 2019: Young Cariboo athlete shines on world stage

Triathlete Danika Robson is making her dreams come true

CASUAL COUNTRY 2019: Tatlayoko Valley post office remains community cornerstone

Through the years, different locations and postmasters this post office has served the community

VIDEO: Young couple found dead in northern B.C. had been shot, police say

Chynna Noelle Deese of the U.S. and Lucas Robertson Fowler of Australia were found along Highway 97

VIDEO: Man found dead near B.C. teens’ truck could be linked to a double homicide

RCMP said they are looking for Kam McLeod, 19, and Bryer Schmegelsky, 18, of Port Alberni

Latest plan is to fly trapped fish by helicopter over Big Bar slide

Multi-pronged plan set in motion to freesalmon blocked by landslide in the Fraser River

Family of missing B.C. senior with dementia frustrated with situation, heartened by community support

Nine days since Grace was last seen the question remains: ‘How can an 86-year-old just disappear?’

GoFundMe set up after 100 Mile House search finds missing young man deceased

More than $2,500 has been donated to the Allan Faulkner Jr. family through the GoFundMe page

Unsealed record suggests U.S. man convicted of murdering Vancouver Island couple left DNA on zip tie in 1987

William Talbott is set to be sentenced Wednesday in the murders of Jay Cook and Tanya Van Cuylenborg

Surrey court clerk files human rights complaint related to concussion

Deborah A. Ryane claims her employer discriminated against her on basis of mental disability

Food fight: Liberals, Tories trade shots as pre-campaign battles intensify

Health Canada released an overhauled document that did away with traditional food groups and portion sizes

Okanagan Air Cadet challenges gender-exclusive haircut policy

Haircut regulation inspires challenge around gender identity

Most Read