Provincial Choice Tax Framework Act

An Act to amend the Excise Tax Act

This bill was last introduced in the 40th Parliament, 2nd Session, which ended in December 2009.

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment amends the Excise Tax Act (the “Act”) to implement, effective July 1, 2010, the new fully harmonized value-added tax framework in Ontario and British Columbia. It also facilitates the new framework to accommodate any province’s decision to have the provincial component of the harmonized value-added tax under the Act apply in that province by achieving a common understanding with Canada in respect of such a new framework, including the provision of rules and mechanisms to ensure
(a) the proper imposition of the provincial component of the harmonized value-added tax in respect of that province;
(b) the proper application of any element of provincial tax policy flexibility contemplated under the common understanding, including rate flexibility for the provincial component of the harmonized value-added tax, rebate flexibility in respect of the provincial component of the harmonized value-added tax and the temporary recapture of certain input tax credits in respect of the provincial component of the harmonized value-added tax;
(c) the proper functioning and application of the Act in all respects, including provisions flowing from the provincial tax policy flexibility contemplated under the common understanding and the addition of every province that chooses to join the new framework; and
(d) the proper administration and enforcement of, and compliance with, the Act.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

Dec. 9, 2009 Passed That the Bill be now read a third time and do pass.
Dec. 9, 2009 Passed That Bill C-62, An Act to amend the Excise Tax Act, be concurred in at report stage.
Dec. 9, 2009 Failed That Bill C-62 be amended by deleting Clause 37.
Dec. 9, 2009 Failed That Bill C-62 be amended by deleting Clause 14.
Dec. 8, 2009 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.

Provincial Choice Tax Framework ActGovernment Orders

December 8th, 2009 / 4:05 p.m.
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NDP

Niki Ashton NDP Churchill, MB

Mr. Speaker, it sounds like a broken record in here. Every time we hear a Conservative get up and ask a question, we hear the same thing about respect. As we all know, the carrot that was provided to the provinces of billions of dollars was a clear indication of the way in which the federal government has very much encouraged this process and supported this process. So by no means was it the provinces in and of themselves.

We have also heard that in the B.C. provincial election this was never stated as part of the campaign platform. There has been no time for consultation, no opportunity for consultation in B.C. and Ontario. As for my province, I will tell members what else makes it a problem. We are subsidizing the imposition of this new tax, so it is unfair for all of our provinces and fundamentally for Canadians.

Provincial Choice Tax Framework ActGovernment Orders

December 8th, 2009 / 4:05 p.m.
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NDP

Charlie Angus NDP Timmins—James Bay, ON

Mr. Speaker, it has been interesting to watch the Conservatives and their anemic friends over there called the Liberal Party. What they have tried to hide behind is the claim that this is a provincial matter, that this is strictly provincial jurisdiction. Yet this is an attempt to shut down the voices of senior citizens and of people with fixed incomes. If this was just an issue of provincial jurisdiction, then why are members of the Liberal Party, like the member for Esquimalt—Juan de Fuca, breaking ranks with their leaders? Why are Conservatives wanting to break ranks. We know the member for Surrey North is certainly concerned about this.

If this were simply an issue of provincial jurisdiction, the yahoos in the backbenches would not be afraid of bringing in witnesses. They are afraid to bring in witnesses because they know it will come back to them. They are not standing up for their people. They are not standing up for senior citizens. They know that the only party in the House that is standing up for senior citizens is the New Democratic Party of Canada.

Provincial Choice Tax Framework ActGovernment Orders

December 8th, 2009 / 4:10 p.m.
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NDP

Niki Ashton NDP Churchill, MB

Mr. Speaker, I would like to thank my colleague from Timmins—James Bay, somebody who, along with many of our colleagues, certainly from northern Canada and northern Ontario, has been very clear about the way in which this is impacting so many of our regions.

He brings up an excellent point. It is shameful the extent to which the Liberal Party members, certainly those from the provinces that will be impacted by the HST, stand against not just the interests, but the needs and the challenges that seniors, students and aboriginal people face in their regions and in their provinces. They should stand to support Canadians.

Provincial Choice Tax Framework ActGovernment Orders

December 8th, 2009 / 4:10 p.m.
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Liberal

John Cannis Liberal Scarborough Centre, ON

Mr. Speaker, I just want to make a brief comment on what was said by the member for Timmins—James Bay about democracy. That is what it is all about. It is democracy.

Provincial Choice Tax Framework ActGovernment Orders

December 8th, 2009 / 4:10 p.m.
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Peter Julian

Closure, closure.

Provincial Choice Tax Framework ActGovernment Orders

December 8th, 2009 / 4:10 p.m.
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Liberal

John Cannis Liberal Scarborough Centre, ON

It is that New Democratic Party that is oppressing democracy. It is literally telling the provinces of British Columbia and Ontario that they cannot democratically choose how they wish to be governed. That is shameful on behalf of the NDP.

Provincial Choice Tax Framework ActGovernment Orders

December 8th, 2009 / 4:10 p.m.
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NDP

Niki Ashton NDP Churchill, MB

Mr. Speaker, when we talk about democracy, democracy is debate. After all, we have this space to debate, to discuss policies that will go forward. I respect that not all parties feel this is perhaps essential, but from what I understand, in elections, that is the mandate we are given. If there is nothing more important than when it comes to a new tax that is unfair on people who are already struggling to make it work, then what are we doing here?

Provincial Choice Tax Framework ActGovernment Orders

December 8th, 2009 / 4:10 p.m.
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Conservative

The Deputy Speaker Conservative Andrew Scheer

It is my duty pursuant to Standing Order 38 to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Winnipeg South Centre, Aboriginal Affairs; the hon. member for Etobicoke North, Health.

We will resume debate. The hon. member for Burnaby—New Westminster will have the floor. I am sure all members will accord him the same courtesy as he accords others when they speak, and listen intently and not interrupt.

Provincial Choice Tax Framework ActGovernment Orders

December 8th, 2009 / 4:10 p.m.
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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, I appreciate your diplomacy on this. Of course this is probably one of the most despicable episodes in Canadian Parliamentary history.

What we have right now is the sorry remnants of the Reform Party, which used to believe in popular democracy, which used to believe in consultation, which used to believe in actually consulting the public, allied with the sorry remnants of the Liberal Party that actually used to believe in due process. They are ramming through, with closure, a bill that is going to impose on the average family in British Columbia a $2,000 bill. These families are struggling economically. These families are already finding it very difficult to make ends meet. The sorry remnants of the Conservatives and the Liberals are allying together to impose closure on all of those Canadians.

In this corner of the House, the NDP is not standing for it. We are speaking out.

I want to make it very clear that if people want to exercise their opposition to the HST, then in coming elections or in coming byelections, they should be voting NDP. It is as clear as that.

Why is closure being imposed this week? We all saw, the whole country saw, the results of the byelection in New Westminster—Coquitlam. The Conservatives pumped unlimited resources into that riding. What was normally a barometer riding, the were hoping to take it. The residents of New Westminster—Coquitlam and Port Moody unequivocally rejected the HST and the Conservative Party on November 9.

If we take those results of New Westminster—Coquitlam and Port Moody and we put them right across British Columbia, a dozen Conservative MPs will not be back in the next Parliament. That is because British Columbians are speaking with one voice. They are saying “no” to the HST.

What do we see? The Conservatives are now, in one of the most sorry Parliamentary episodes that we have ever seen in our country, imposing closure, imposing a motion and imposing a bill that provides for four hours of so-called committee work, between 7 p.m. and 11 p.m. on a weekday evening. It is absolutely despicable what they are doing to the Canadian public, what they are doing to British Columbians and Ontarians, which is almost half the country, if we take those two populations, by imposing closure and refusing the kind of public participation that we should have.

Only the New Democrats are standing in the House, saying that we do not agree. We are going to do everything we can to force the public consultations that the government should be performing.

There is no doubt that this plot was hatched by the Conservative government, that it forced the HST on British Columbians and Ontarians. It offered up the so-called bribe money to try to influence those governments. However, in the British Columbia election, which was held on May 12, not a single reference was made to the HST. In fact, the premier at that time said that he was not even considering bringing in the HST. British Columbians may have voted on that basis, but they were fundamentally lied to by B.C. government. There has been no public consultation. There has not even been a vote in the legislature.

For the Conservative government to impose closure on this bill, to impose closure on the HST, is nothing less than an attempt at damage control. The Conservatives have no legitimacy to bring this in. They have no legitimacy, aside from their sorry Liberal allies, to impose this on British Columbians. They are doing it because they are hoping that British Columbians are going to forget.

British Columbians are not going to forget. They understand the implications such as $500 for the average British Columbian, $2,000 for the average family of four. This is a tax shift for corporate CEOs who the Conservatives and Liberals seem to love. They just cannot give enough love to corporate CEOs. They will give them whatever they want, regardless of whether it makes sense fiscally or not. However, that massive and irresponsible tax shift has to be paid for and it will be paid by ordinary British Columbians and Ontarians. It is not only bad for the individuals involved, it is not only bad for British Columbia and Ontario families, it is bad for community businesses.

As these fees go up throughout the whole spectrum of necessary purchases that families make in this country, small businesses will find that their clients have less money to spend. That is why the restaurant industry, dry cleaners, hairdressers and barbers all oppose this incredibly misguided, irresponsible and outrageous tax shift. It does not just hit individuals. It hits community businesses as well.

We have another sop to foreign companies so the money can go to Houston and the Bahamas, but people and businesses on Main Street in small towns and cities across British Columbia and Ontario will be negatively impacted. Some businesses will go under and some families will lose their homes because, quite frankly, $2,000 breaks the backs of some families that are already suffering because of this recession.

This irresponsible move is something the NDP will oppose. We will oppose it here, we will oppose it as we go across the country and we will see the consequences of this irresponsible folly in the months to come.

Every NDP MP actually listens to his or her constituents. Unlike Conservatives and Liberals who seem to come in here with the idea of representing Ottawa to their home constituency, the NDP members listen to our home constituents. We have all been flooded with emails and letters that talk about this appallingly irresponsible tax shift.

I am going to read just a few of the many emails and letters. I could spend 12 hours reading them into the record, but I only have a few minutes.

Marie from Burnaby says, “I oppose the HST. I supply much of the clothing for my great grandchildren, as well as my grandchildren. I am 68 years old and will be unable to keep this up as the extra 7% will make a big difference”.

Patricia from New Westminster says, “I strongly oppose this tax on the basis that the B.C. Liberals have no mandate to create such a tax. It is being unfairly implemented in B.C. and will place too great a burden on consumers struggling to cope with the recession.

Doug from Burnaby wrote to the leader of the Liberal Party, who is not listening, as the leader of the government is not listening, and asked, “Does it not concern you that the overwhelming majority of citizens of B.C. have spoken loudly and clearly against the HST?”

Nadia is from Burnaby and works in the food service industry. She says, “I am very worried about the impact of the HST on our business. Consumers today don't have money to spare and higher prices will mean fewer customers”.

A new Canadian who has come here from overseas says, “I am strongly against the application of the HST. I am extremely disappointed with my decision of immigrating to Canada because this is a country discouraging positive endeavour. The HST will be just like frost on the snow of our future lives”.

Members can laugh about new Canadians opposing the HST, but we are their voice in the House. The government should start listening to ordinary British Columbia and Ontario families and new Canadian families. It should start listening for the first time. It should actually listen to the voices coming from across the country opposing the HST. Rather than invoking closure, what it should be doing is holding public hearings and allowing the real voices of Canadians to be heard.

The NDP has opposed this unfair tax shift not only nationally, but we opposed it in each of the provinces. In Saskatchewan we stopped it cold, rolled it back and abolished the HST. We knew it was bad for ordinary families. In Manitoba we stopped it cold and refused to implement it in Nova Scotia. The new NDP government in Nova Scotia has cut it out on heating fuel because it knows what this means for ordinary families in Nova Scotia.

Across the country we oppose the HST. It is unfair to ordinary families, and British Columbians and Ontarians deserve better from the government.

Provincial Choice Tax Framework ActGovernment Orders

December 8th, 2009 / 4:20 p.m.
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Conservative

Stephen Woodworth Conservative Kitchener Centre, ON

Mr. Speaker, most Canadians operate on the basis that a democratically elected government represents the people who elected it. Most Canadians accept that a democratically elected government has the right to make decisions on behalf of the people who elected it.

Now we see the NDP advancing the anti-democratic idea that the House should dictate and impose its will on the democratically elected governments of B.C. and Ontario. If the people of B.C. and Ontario do not like the HST, they will have their chance to change it.

Why do the NDP not trust the people of Ontario and B.C.? When did the NDP abandon the idea of democratically elected governments for the provinces?

Provincial Choice Tax Framework ActGovernment Orders

December 8th, 2009 / 4:20 p.m.
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Conservative

John Baird Conservative Ottawa West—Nepean, ON

Dalton couldn't get any work done. I had to come here to help him. Dalton couldn't get any help from the Liberals. I had to come here and help him.

Provincial Choice Tax Framework ActGovernment Orders

December 8th, 2009 / 4:20 p.m.
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Conservative

The Deputy Speaker Conservative Andrew Scheer

Order, order.

The Minister of Transport will have a chance to ask a question if he chooses to get up and asks to be recognized.

The hon. member for Burnaby—New Westminster.

Provincial Choice Tax Framework ActGovernment Orders

December 8th, 2009 / 4:20 p.m.
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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, I doubt very much that the Minister of Transport will get up because he cannot defend his actions in this House. He cannot defend them to his constituents either. I very much doubt he will actually care to stand up and speak on this.

However, I want to reply to the question that was asked by the Conservative member, who insinuates that standing up against closure and allowing for public hearings on this issue, so that real British Columbia and Ontario families can be heard in the House of Commons and heard in committee, is somehow anti-democratic. One has to wonder what kind of stuff is in their water.

One would have to be incredibly irresponsible to say that a closure motion, refusing public hearings and committee consultations on this bill, is somehow in any way democratic. Maybe in Colombia, but not here in Canada.

Provincial Choice Tax Framework ActGovernment Orders

December 8th, 2009 / 4:25 p.m.
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Liberal

John Cannis Liberal Scarborough Centre, ON

Mr. Speaker, I am glad the Minister of Transport did not get up. He gets enough time during question period; it is our time now.

Nevertheless, the member for Kitchener Centre placed it one way, and I would like to place it a different way. The member for Burnaby—New Westminster said that Manitoba, for example, rejected it.

I know he believes in democracy, and democratically, the question is not up to us. The Conservative government of the day has made a proposal to these two provinces, British Columbia and Ontario. It is up to those two provinces to accept or decline. Who is he, or I, or anybody else to decide? I say to the member, who believes in democracy, let those provinces make up their own minds. They will either pay the consequences or reap the benefits. Let them make that decision.

Provincial Choice Tax Framework ActGovernment Orders

December 8th, 2009 / 4:25 p.m.
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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, those provinces have made their decision. Nearly 80% of the people in Ontario have said they reject the HST. Over 80% of the population of British Columbia has said they reject the HST.

Very clearly the public in both of those provinces have spoken out. What they are not getting from either Conservatives or Liberals is any sort of respect for the democratic process. This is closure. This is not allowing any sort of public participation, any sort of public consultation, any sort of committee work, nothing at all.

This is nothing but anti-democratic closure, pure and simple. That is why one party is standing up for British Columbians and Ontarians.