Bill C-342

House of Commons Debate on Bill C-342

June 9, 2017

Warawa Introduces Bill That Says No to Tax on Tax

March 20, 2017

Ottawa, ON – Today, Mark Warawa, Member of Parliament for Langley—Aldergrove, introduced his Private Member’s Bill C-342: An Act to amend the Excise Tax Act (carbon levy).

“Prime Minister Trudeau decided that all Canadians must pay a new carbon tax on everything. To make this tax hike seem reasonable, the Prime Minister told Canadians that the provinces and territories may make this tax revenue neutral, but he assured us that his new tax on carbon would not create any new taxes for his federal government. Unfortunately, that is not the case.

“It’s been revealed that the federal Liberal government will be collecting billions of new tax dollars from Canadians by charging GST/HST on top of the price on carbon… a tax on a tax,” said Warawa.

Under the Pan-Canadian Framework on Clean Growth and Climate Change, the federal government has outlined a benchmark for pricing carbon by 2018. The provinces and territories are required to implement their own carbon pricing systems to meet the federal benchmark.

Warawa’s bill would amend the Excise Tax Act to prevent the federal government from collecting GST/HST on top of the new federally mandated price on carbon.

“I thank my colleague Mark Warawa for introducing this Private Member’s Bill,” said MP Mel Arnold, who seconded the introduction of the bill. “Applying GST/HST to federally mandated taxes on carbon is unfair to Canadians and I look forward to working with MP Warawa to stand up for Canadians against this tax grab.”

Warawa’s bill was introduced and received its first reading in the House of Commons on March 20, 2017. Debate on the bill is expected to begin in early April. 

Higher taxes not "fun with numbers" for ordinary Canadians

May 01, 2017

Member of Parliament Mark Warawa has expressed concern over Prime Minister Trudeau’s decision to prevent the tabling of a Library of Parliament report in the House of Commons last week.

The report, compiled by non-partisan analysts from the Library of Parliament Economic and Trade Policy Section, indicates that the Trudeau government stands to make almost $280 million in GST revenues on provincial carbon taxes in Alberta and British Columbia over the next two years.

These figures run in contrast with repeated statements by Prime Minister Justin Trudeau and Environment Minister Catherine McKenna that carbon pricing would be revenue-neutral for the federal government.

When asked by national media to comment, a spokesperson for Finance Minister Bill Morneau called the Library of Parliament and subsequent Conservative criticism "fun with numbers."

"I am shocked by the Trudeau government’s decision to deliberately prevent a report on GST and carbon pricing from being presented in the House of Commons. Higher taxes are not ‘fun with numbers’ for Canadians who are left to foot the bill.

"At a time when they should be lowering taxes, creating jobs and making life more affordable for Canadians, the government is instead abandoning transparency, hiking taxes and scoffing at the Library of Parliament," stated Warawa.

Conservative Member of Parliament Pierre Poilievre commented, “a carbon tax will harm the middle class and Canada’s employers, and major questions about the tax remain unanswered. For example, the Trudeau government knows what it will cost Canadian families, but they’re refusing to tell us.

“Now, my colleague Mark Warawa has discovered that the Liberals introducing a carbon tax just wasn’t enough — they’re also going to collect tax on the carbon tax. They will literally be collecting a tax on a tax. Conservatives will continue to fight the Liberal carbon tax and stand up for middle class Canadians,” Poilievre concluded.

In response to this tax on a tax, Warawa has introduced Bill C-342: An Act to Amend the Excise Tax Act (carbon levy), which would prevent the federal government from collecting GST on provincial carbon taxes. Debate on the Bill is expected to begin in early June.

"I think the question Prime Minister Trudeau is now asking himself is whether any action — short of a direct apology and commitment to immediately eliminate this senseless tax on a tax — will be enough to restore Canadians faith in his government," Warawa speculated. "Based on the responses we've been receiving, the answer is ‘no.’"

Petition: #NoTaxOnTax