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.