Wednesday, December 21, 2016

Carbon Tax Revenue in B.C. & GST charged by Federal Govt.

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).

A petition to the House of Commons should be going online in the new year. Please consider signing it when it is posted on the Govt. website https://petitions.parl.gc.ca/en/Petition/Search

The same GST  on Carbon Tax is applied to your gas and diesel you use in your Vehicles
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Proposed Petition waiting MP Sponsorship.
  • 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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http://bcbudget.gov.bc.ca/2014/bfp/2014_budget_and_fiscal_plan.pdf  P.124


1.271 Billion in Carbon Tax Revenue P.124




What is carbon tax?
The Carbon Tax is an environmental tax levied on the carbon content of fuels. FortisBC collects this tax on behalf of the provincial government and Carbon Tax is subject to the Goods and Services Tax (GST).

P.76
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http://vernonblog.blogspot.ca/2008/07/national-accounting-firm-suggests.html   (excerpts below)
If, as has been estimated, individuals will be paying 1/3 of the Carbon Tax assessed, that means that a minimum of $30 million will flow out of BC and into the Federal treasury on account of GST charged on the Carbon Tax over the initial 3 year period. This estimate does not factor in the aforementioned schools, universities, hospitals, charities and non-profit organizations, which will certainly account for millions more.

Was this intentional? Not likely. 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.

Can the BC government do anything about it? Doubtful. This is the result of Federal legislation over which the province has no control. What would it take to fix it? The Federal government would have to make a change to the Taxes, Duties and Fees (GST/HST) Regulations to specifically exclude BC's Carbon Tax from the GST regime. You might want to make this friendly suggestion to your Member of Parliament .

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