Proceedings of the Standing Senate Committee on
Banking, Trade and
Commerce
Issue 23 - Thirteenth Report of the Committee
Tuesday, March 11, 1997
The Standing Senate Committee on Banking, Trade and Commerce has the honour to present its
THIRTEENTH REPORT
Your Committee, to which was referred the Bill C-70, An Act to amend, the Excise Tax Act, the Federal-Provincial Fiscal Arrangements Act, the Income Tax Act, the Debt Servicing and Reduction Account Act and related Acts, has examined the said Bill in obedience to its Order of Reference dated Thursday, February 20, 1997, and now reports the same with one amendment and with one resolution.
Amendment:
The Bill C-70, in Clause 242, be amended by replacing lines 40 to 45 on page 334 and lines 1 to 4 on page 335 with the following:
"(2) Subsection (1) comes into force on a day fixed by order of the Governor in Council, which day shall not be before the first day on which provinces together having at least 51% of the total population of all provinces that are participating provinces (within the meaning of subsection 123(1) of the Act) or that impose a general retail sales tax at a percentage rate on all goods (other than those specifically enumerated in the legislation that imposes the tax) or a general value added tax at a percentage rate on all goods and services (other than those specifically enumerated in the legislation that imposes the tax) have enacted laws requiring that suppliers include the tax under Part IX of the Act in indications of the prices of property or services supplied."
Resolution:
The Committe notes that, since the inception of the GST, the federal government has made GST rebate payments to compensate the working poor, people on social assistance, senior citizens, students, and low income people for the added tax burden imposed on them by the GST.
In the case of the HST to take effect in Newfoundland and Labrador, Nova Scotia and New Brunswick, no such mechanism exists in either the federal or provincial legislation to relieve the burden on lower income people.
Be it therefore resolved that the committee recommends that the Senate urge the provincial governments in provinces where the HST will take effect to provide relief to low income people through rebates, tax credits, or deductions to offset the provincial portion of the HST.
Respectfully submitted,
MICHAEL KIRBY
Chairman