Yes, we did, but I cannot—
Evidence of meeting #59 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was change.
A recording is available from Parliament.
Evidence of meeting #59 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was change.
A recording is available from Parliament.
Chief, Excise Policy, Sales Tax Division, Excise Act, Tax Policy Branch, Department of Finance
Yes, we did, but I cannot—
Chief, Excise Policy, Sales Tax Division, Excise Act, Tax Policy Branch, Department of Finance
Thank you.
Hoang Mai NDP Brossard—La Prairie, QC
Can you tell us what percentage of the vehicle fleet is affected by the green levy?
Chief, Excise Policy, Sales Tax Division, Excise Act, Tax Policy Branch, Department of Finance
What I can tell you, in the way of background information, is that there are approximately 830 models of vehicles in the EnerGuide. The green levy currently applies to about 153 models. With the amendments in this bill, that application would continue.
Liberal
Scott Brison Liberal Kings—Hants, NS
On the rental vehicles issue, would Canadians get tax relief when they bring the car into Canada, or do they pay their taxes and then get a rebate once they have returned the car to the U.S.?
Senior Legislative Chief, Sales Tax Division, GST Legislation, Tax Policy Branch, Department of Finance
If the Canadian has been outside Canada for less than 48 hours, when he enters, he would declare how long he has been out of Canada. The number of weeks are multiplied by the assigned value for the vehicle. For a car, it's $200. It's a self-declaration at the time of entry into Canada, because there is no checkpoint exiting Canada.
Liberal
Scott Brison Liberal Kings—Hants, NS
How is the temporary importation monitored to make sure the vehicles are returned within 30 days? How do you monitor that?
Senior Legislative Chief, Sales Tax Division, GST Legislation, Tax Policy Branch, Department of Finance
It's based on a declaration at the time of importation. These are rental vehicles, and rental vehicles are not rented for extended periods of time.
Liberal
Scott Brison Liberal Kings—Hants, NS
Are there going to be more resources to monitor this? It's an increased burden. Are there going to be more resources allocated?
Senior Legislative Chief, Sales Tax Division, GST Legislation, Tax Policy Branch, Department of Finance
It's a decision for CBSA. They have to decide on the amount of resources they need to enforce a particular measure.
Liberal
Scott Brison Liberal Kings—Hants, NS
I ask the question because there are reductions in the budget, and this is an actual increase in the demands on the agency.
Assistant Commissioner, Legislative Policy and Regulatory Affairs Branch, Canada Revenue Agency
Let me provide a bit of context. This was a measure that the Tourism Industry Association of Canada brought forward. In unusual circumstances, people were getting taxed at the border when they shouldn't have been. It was discouraging people from visiting Canada and generating tourism. The volume is not considered to be significant, but it was a barrier to tourism. That's why we were asked to put in this measure. It's not expected to apply in a lot of circumstances. Where it does, it will be important to encourage tourism.
Liberal
Scott Brison Liberal Kings—Hants, NS
That's helpful.
In regard to expanding the GST or HST exemption beyond the pharmacist dispensing drugs, what are the benefits for pharmacists? How does this help them service their clients?
Senior Legislative Chief, Sales Tax Division, GST Legislation, Tax Policy Branch, Department of Finance
Their service to their patient will be free of GST and HST.
Liberal
Scott Brison Liberal Kings—Hants, NS
Has it been a significant issue? Has it been something that the organizations representing pharmacists have been pushing for, for some time?
Senior Legislative Chief, Sales Tax Division, GST Legislation, Tax Policy Branch, Department of Finance
The Canadian Pharmacists Association has been asking for that change.
Liberal
Scott Brison Liberal Kings—Hants, NS
The drug isosorbide-5-mononitrate is added to the list of zero-rated drugs. Is it a new product, or has there been an assessment that justifies the proposed change?
Senior Legislative Chief, Sales Tax Division, GST Legislation, Tax Policy Branch, Department of Finance
The information that that particular drug was not zero-rated actually came to us from CRA. The question as to why that one is not zero-rated is because there is another very similar drug that is called isosorbide dinitrate, and that one was on the list. Basically, there was no logic to have the dinitrate and not the isosorbide-5-mononitrate on the list, because they are both used to treat congestive heart failure.
Senior Legislative Chief, Sales Tax Division, GST Legislation, Tax Policy Branch, Department of Finance
I don't think it's a matter of being cost-effective. It is simply that there's basically a list, and I think the other one, the dinitrate, is an older drug and was put on the list at some point. When the new one came in, there was no demand for zero-rating that product immediately. It came about because we have been made aware of that change.
