Good afternoon. My name is Pierre Mercille. I am the Senior Legislative Chief in the sales tax division of the Department of Finance.
Part 2 of the bill implements measures involving the goods and services tax, as well as the harmonized sales tax.
There are three different GST and HST measures in part 2 of the bill.
The first GST/HST measures restore the GST/HST-free treatment of the drug naloxone when it is supplied without a prescription for emergency use to treat opioid overdose outside hospital settings. This amendment generally comes into effect on March 22, 2016.
The second measure amends the definition of “taxi business”. Under the GST/HST, all taxi operators or independent drivers are required to register for the GST/HST and charge tax on their fares, irrespective of the level of their sales. These rules have been put in place since the inception of the GST and ensure that all taxi operators are treated the same way.
Commercial ride-sharing services facilitated by web applications provide passenger transportation services that are similar to taxi services. However, such ride-sharing services may not be subject to the same GST/HST rules as taxi businesses because they may not fall under the current definition of “taxi business”. To ensure that the GST/HST rules apply consistently to taxi services and ride-sharing services, the definition of “taxi business” in the GST/HST legislation is amended to require the providers of ride-sharing services—we're talking here about independent drivers—to register for the GST/HST and charge tax on their fares in the same manner as taxi operators. The amendment will be effective as of July 1, 2017.
The last measure in part 2 of the bill repeals the GST/HST rebate available to non-resident individuals and tour operators for the GST/HST that is payable in respect of the Canadian accommodation portion of eligible tour packages. This rebate is complex, it's costly to administer, and it benefits only a narrow segment of the tourism industry. Therefore, it was considered an inefficient tax measure.
The repeal will generally apply in respect of supply of tour packages or accommodation made after March 22, 2017, which is the date of the budget. There is also a transitional measure, in that the rebate will continue to be available in respect of supply of tour packages and accommodation made after March 22, 2017 but before January 1, 2018, if all of the consideration for the supply of the tour package is paid before January 1, 2018.
That concludes the description of the measures in part 2 of the bill.