Whereas the Government of British Columbia instituted a carbon tax in 2008; And whereas the Government of Canada imposes GST on the carbon tax, essentially a tax on tax; And whereas the carbon tax and subsequently the GST on the carbon tax applies widely on carbon fuels and affects the cost of living for British Columbians: Therefore be it resolved that UBCM request the provincial and federal governments to eliminate the GST being charged on the provincial carbon tax.
Ministry of Finance The federal Goods and Services Tax GST is a tax imposed by the Government of Canada and not the Government of BC. The tax base for the GST is a federal responsibility, meaning what is or is not subject to GST is entirely a decision for the federal government. The carbon tax is a provincial tax on fuels, imposed by the Government of BC. It is a volume based tax and must remain a volume based tax because the tax rate for a given fuel is determined by emissions that would be produced from the combustion of that fuelthe level of emissions remains the same regardless of the purchase price of the fuel. Generally, the federal GST applies to a broad range of goods and services and is calculated on the total consideration payable for the good or service. By statutory definition, consideration for the purposes of the GST includes: -Any tax other than GST, duty, or fee imposed under a federal Act. -Any provincial levy payable in respect of a supply, unless specifically exempt. -Any municipal levy payable in respect of a supply. In British Columbia, the only provincial levy which is not included in the calculation of GST payable is the provincial sales tax PST. All other provincial levies including the carbon tax, motor fuel tax and tobacco tax are all included in calculation of the GST payable. The GST applies in the same way to provincial levies in other provinces. Suggestions for changes to the GST are best directed to the federal Minister of Finance.