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

Road rescue near Sayward points to volunteer need

Fire department recruits can be tough for small, remote communities

Quadra hikers found after two days in the wild

Two women did not return from what was supposed to be an hour-long walk Wednesday

Hunter who saved man pinned inside smashed truck says ‘God was sending me to him’

Sayward man describes chance discovery of Duncan Moffat, 23, in North Island woods

Man arrested in Campbell River following alleged getaway attempt

Suspect faces charges including dangerous driving; drug investigation ongoing

New Coast Guard radar boosts marine traffic monitoring off B.C. coast

Six radar installations set up for Georgia Strait to Queen Charlotte Strait to Prince Rupert

Saving salmon: B.C. business man believes hatcheries can help bring back the fish

Tony Allard worked with a central coast First Nation to enhance salmon stocks

B.C. asking for tips on ‘dirty money’ in horse racing, real estate, luxury cars

Action follows a Peter German report on money laundering in B.C. casinos

Canadian dead more than a week after plane crash in Guyana: Global Affairs

Global Affairs said it couldn’t provide further details on the identity of the Canadian citizen

Children between 6 and 9 eligible for $1,200 RESP grant from province

BC Ministry of Education is reminding residents to apply before the deadline

Victoria spent $30,000 to remove John A. Macdonald statue

Contentious decision sparked controversy, apology from mayor

Privacy concerns over credit card use for legal online pot purchases

Worries follow privacy breaches at some Canadian cannabis retailers

NEB approves operating pressure increase to repaired Enbridge pipeline

The pipeline burst outside of Prince George on Oct. 9, now operating at 85 per cent

B.C. VIEWS: Setting speed limits in a post-fact political environment

Media prefer ‘speed kills’ narrative, even when it fails to appear

Controversy erupts over Japanese flag in B.C. classroom (updated)

Online petition demanding removal has collected more than 5,700 signatures

Most Read