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441-00107 (Taxation)

Paper petition

Original language of petition: English

Petition to the House of Commons

We, the undersigned citizens of Canada, draw the attention of the House of Commons to the following:

Whereas, the government's carbon tax system results in GST being applied to carbon taxes, ultimately leading to double taxation on essential goods and services and additional costs being filtered down to consumers.

Therefore we, the undersigned citizens and residents of Canada, call upon the Government of Canada to eliminate the GST on the federal carbon tax, levies, and additional costs the newly announced standards charges.

Response by the Deputy Prime Minister and Minister of Finance

Signed by (Minister or Parliamentary Secretary): The Honourable Chrystia Freeland

Our economy and the quality of life we have in Canada are deeply connected to the health of our environment. Pollution is not free. Canadians pay the price when extreme weather threatens their safety, their health, their communities and their livelihoods.

That is why our Government has taken action to ensure that there is a price on pollution across Canada as of 2019. Pricing pollution is generally viewed as one of the most economically efficient ways to send a price signal to companies, investors, and consumers to make more environmentally sustainable choices to reduce greenhouse gas emissions. It is central to our country’s plan to meet our emissions reduction targets, grow the economy and build resilience to a changing climate.

The federal pollution pricing system applies in provinces and territories that request it or that do not have a system in place that meets the federal benchmark. It has two components: a regulatory charge on fossil fuels (“fuel charge”) and an output-based pricing system for large industry. One or both components of the federal system currently apply in Ontario, Prince Edward Island, Manitoba, Saskatchewan, Alberta, Yukon and Nunavut. 

The direct proceeds from the federal pollution pricing system will remain in the province or territory of origin. In Prince Edward Island, Yukon and Nunavut, the direct proceeds from the federal system are returned directly to the governments of these jurisdictions. In Ontario, Manitoba, Saskatchewan and Alberta, the Government of Canada is returning the bulk of the direct proceeds from the fuel charge directly to individuals and families, through tax-free Climate Action Incentive payments. For example, in Alberta for 2021, the baseline amount for a single adult was $490, while the baseline amount for a family of four was $981. People claimed these payments through their 2020 personal income tax returns. Budget 2021 proposed changing the delivery of CAI payments from a refundable credit claimed annually on personal income tax returns to quarterly payments made through the benefit system. This will deliver Canadians’ CAI payments on a more regular basis. These quarterly payments would start in 2022.

With respect to the Goods and Services Tax/Harmonized Sales Tax, the GST/HST is calculated on the final amount charged for a good or service. The general rule that was adopted at the inception of the GST, when it was introduced by Prime Minister Brian Mulroney, is that this final amount includes other taxes, levies and charges that apply to the good or service and that may be embedded in the final price. This longstanding approach to calculating the GST/HST helps to maintain the broad-based nature of the tax, and ensures that tax is applied evenly across goods and services consumed in Canada. It also simplifies the vendor’s calculation of the amount of tax payable since the vendor is not required to back out other taxes, levies and charges at the point of sale in order to determine the amount of GST/HST payable.

A fair and efficient tax system is essential to the economic and social well-being of Canadians. Our Government’s approach to tax fairness is guided by the overall objective of building an economy that works for the middle class and those who are working hard to join it

Presented to the House of Commons
Garnett Genuis (Sherwood Park—Fort Saskatchewan)
December 16, 2021 (Petition No. 441-00107)
Government response tabled
January 31, 2022
Photo - Garnett Genuis
Sherwood Park—Fort Saskatchewan
Conservative Caucus

25 signatures

Only validated signatures are counted towards the total number of signatures.