Mr. Speaker, I welcome the opportunity to speak to the House today at third reading of Bill C-24, the Sales Tax and Excise Tax Amendments Act, 1999.
By way of introduction, the measures contained in this bill, while wide ranging, all fall within the broad sphere of the government's ongoing commitment to an effective, efficient and fiscally responsible government. The intent of the legislation before us is to make our tax system more simple and more fair not only for individual Canadians but for Canadian businesses as well.
It is also in line with our government's commitment to sustain and improve our federal taxation system so as to encourage harmonization and federal-provincial co-operation.
Bill C-24 is aimed primarily at improving application of the goods and services tax, the GST, and the harmonized sales tax, the HST. It also contains some important proposals relating to specific taxes on certain products.
As hon. members are familiar with this legislation, I will briefly reiterate some of the key measures contained in the bill.
The government is committed to reducing smoking in Canada particularly among young Canadians. Bill C-24 contains measures with respect to the taxation of tobacco products that reaffirm the government's commitment to work in concert with the provinces and territories in order to reduce tobacco consumption in Canada, while at the same time maintaining vigilance in combating the level of contraband.
An important component of Bill C-24 reflects the government's responsiveness to the health and social needs of Canadians. For example, Bill C-24 proposes to provide a sales tax exemption for respite care for Canadians who are providing care for family members, very often an elderly parent or a disabled child. In past budgets the government has introduced numerous measures to assist individuals with disabilities. The bill builds on such actions by extending sales tax relief to the purchase of specially equipped motor vehicles for transporting individuals with disabilities.
In this same area, other measures contained in this bill relate to GST and HST exemptions on speech therapy, osteopathy and psychotherapy.
Bill C-24 reflects the government's commitment to making the taxation system fairer for Canadians. That commitment is translated into a number of different provisions.
The bill provides charities whose main purposes include the provision of care, employment, employment training or employment placement services for individuals with disabilities the capacity to compete on an equal footing when selling goods or services to GST registered businesses. Bill C-24 also refines the rules for the streamlined accounting method for charities.
A number of amendments contained in Bill C-24 are aimed at clarifying and refining the application of our sales tax system. In response to representations from the tax and business communities, these amendments will ensure consistency and fairness in the application of the GST and HST in a number of key areas.
For instance, further to the process of co-operation between the federal government and businesses in the energy sector, this bill proposes certain amendments simplifying the application of the GST and the HST in this sector.
These amendments will help Canadian businesses to remain competitive internationally.
With respect to other international commercial transactions, the bill also proposes to make air navigation services provided to carriers tax free in relation to international flights, and to refine the rules for exports of goods by common carriers.
Bill C-24 proposes a number of enhancements to the design and delivery of the visitors rebate program to further promote Canada as a destination for tourists and a place to hold conventions, for example by reducing the GST and HST costs associated with providing conventions to non-residents. These proposals will help to promote Canada as a tourist destination and to support the tourism industry in the creation of employment.
The federal government will continue to consult with the business community to improve the operation of our sales tax system. In that regard Bill C-24 contains a number of proposals to improve the rules relating to certain business arrangements and ensures that the legislation accords with the policy intent.
Our government is also continuing its efforts to improve the application and enforcement of our sales tax system. Bill C-24 amends a number of provisions in these areas, in some cases in order to bring them into line with existing administrative practices and, in others, in order to increase the effectiveness of assessment, appeals and collection provisions in general.
As I mentioned earlier, Bill C-24 also contains measures relating to taxes and tariffs on specific products. In accordance with the 1997 decision of the World Trade Organization, the bill contains the amendments that repeal the provisions relating to the excise tax on split-run editions of periodicals.
With respect to tariffs, Bill C-24 implements proposals to increase certain duty and tax exemptions for persons returning to Canada after a minimum period abroad. These proposals will make it more convenient for travellers to clear Canadian customs.
Our government remains committed to increasing aboriginal self-government and has frequently reiterated its desire to conclude tax agreements with first nations interested in exercising fiscal authority.
This bill proposes technical amendments to improve harmonization of first nations sales taxes with the GST, and to ensure that the definitions in implementation legislation are consistent with those used in other federal statutes.
In conclusion, the measures contained in Bill C-24 which I have outlined here today propose to improve the operation of our tax system while at the same time responding to the social issues that are important to Canadians.
I therefore urge hon. members to give their full support to this bill.