Tuesday, May 30, 2017

Question in Parliament re GST on Carbon Tax

Question No. 982 Questions on the Order Paper Routine Proceedings May 29th, 2017 / 3:20 p.m.
Conservative Mark Warawa Langley—Aldergrove, BC

With regard to the statement by the Minister of Environment and Climate Change in the House of Commons on April 10, 2017, that “Every dollar that comes from putting a price on carbon pollution to the federal government goes directly back to the provinces”: (a) does the government consider this statement to be accurate; (b) if the answer in (a) is affirmative, then how is the government disposing of the extra Goods and Services Tax collected as a result of collecting GST on the price of carbon; (c) when did the program to send the extra revenue collected from the GST back to the provinces begin; and (d) how much has been paid out to the provinces, broken down by province, as a result of such a program?

Question No. 982 Questions on the Order Paper Routine Proceedings 3:20 p.m.
Moncton—Riverview—Dieppe New Brunswick Liberal Ginette Petitpas Taylor Parliamentary Secretary to the Minister of Finance

Mr. Speaker, pricing carbon pollution is a central component of the pan-Canadian framework on clean growth and climate change that was announced by Canada’s first ministers in December 2016. The pan-Canadian approach to pricing carbon pollution will expand the application of carbon pricing, which is already in place in Canada’s four largest provinces, to the rest of Canada by 2018. Recognizing that each province and territory has unique circumstances, the pan-Canadian approach allows provinces and territories flexibility to choose between a direct price on carbon pollution and a cap and trade system. As part of the pan Canadian framework, the Government of Canada will introduce a backstop carbon pollution pricing system that will apply in provinces and territories that do not have a carbon pricing system in place that meets the federal carbon pricing benchmark by 2018.

The pan-Canadian framework includes the commitment that revenues from pricing carbon pollution will remain with the province or territory of origin, each of which will decide how best to use the revenue. These revenues do not include those in respect of the GST charged on products or services that may have embedded carbon pricing costs in them. Revenues generated by the federal backstop will be returned to the jurisdiction in which the backstop revenues originated.

The Government is making investments to address climate change and support a healthy environment, through the Pan-Canadian Framework and other measures. Budget 2016 provided almost $2.9 billion over five years to address climate change and air pollution. This included $2 billion to establish the Low Carbon Economy Fund to support provincial and territorial actions that materially reduce greenhouse gas emissions. Budget 2017 proposes a number of new and renewed actions to reduce emissions, help Canada adapt and build resilience to climate change and support clean technologies. To further advance Canada’s efforts to build a clean economy, Budget 2017 lays out the Government’s plan to invest $21.9 billion in green infrastructure. This includes programs and projects that will meet the goals outlined in the Pan-Canadian Framework.
Don Quixote Note: From this evasive answer to the question of whether Carbon Tax would be exempt from GST (Tax on a TAX) I can only predict that it for-shadows a negative response to the  E-713 Petition that must be responded to  by the Government  within 45 days of Mat 4,  The Private Members Bill C-342 that will be debated on June 8 that would stop this Tax on a Tax also appears to be rejected by the Liberal Majority.

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