moved:
Motion No. 1
That Bill C-32 be amended by deleting Clause 2.
Motion No. 2
That Bill C-32 be amended by deleting Clause 3.
Motion No. 3
That Bill C-32 be amended by deleting Clause 4.
Mr. Speaker, we have decided to table amendments to Bill C-32 and I will briefly explain why. Then my colleagues will make additional comments.
First, we must put Bill C-32, which is entitled an act to amend the Excise Tax Act, the Excise Act and the Income Tax Act, in its proper context. Originally, the purpose of this legislation was to implement the federal action plan on tobacco smuggling, as well as changes proposed to the tax structure by the government, this past January or February.
However, clauses 2, 3 and 4 of that bill include measures which affect air transportation and result from the last federal budget. These clauses provide that, on flights with a ticket price of more than $500, the total tax amount, which is currently $40, will progressively increase to $50. However, for tickets costing $700 and more, the tax payable will now be $50.
We feel that this is totally unacceptable, given that most remote areas were very affected by the deregulation in the air transportation sector. Considering the current cost of airline tickets to these regions, it seems totally unacceptable to
increase the burden for consumers living in these regions as well as for taxpayers who are already making a very big contribution.
This is why, through our amendments, we propose to bring that tax back to at least the previous levels. At the same time, we urge members of the transport and finance committees to review the situation and bring airfare to a more reasonable level as regards remote destinations.
Here I do not mean the Quebec, Atlantic or western regions. I am referring to regions such as mine, Abitibi-Témiscamingue, Quebec's north shore and Gaspé regions and, in fact, most regions of Quebec and northern Ontario. Several Atlantic regions will also be adversely affected by the new tax. This measure went unnoticed in the last budget and is now hidden in Bill C-32.
We propose these amendments so that the Department of Finance does not get $24 million more this year and $44 million more next year at the expense of taxpayers living in remote areas. Indeed, we think this is totally unacceptable. I do hope that the government will realize the impact of this bill and withdraw clauses 2, 3 and 4.