moved for leave to introduce Bill C-259, an act to amend the Excise Tax Act (elimination of excise tax on jewellery).
Madam Speaker, I am pleased to introduce my private member's bill to amend the Excise Tax Act and its regulations to eliminate the excise tax on jewellery.
The excise tax is a luxury tax that unfairly discriminates against the jewellery industry. It is a 10% levy paid by manufacturers on the sale price of items manufactured in Canada and by importers on the duty paid value of imports. It was introduced in 1918, after World War I, as part of a package of excises on items considered to be luxury goods. Today, it is the only remaining luxury tax in Canada.
Canada is the only industrialized nation and the only diamond producing nation that has maintained such a tax. Due to this tax, Canadian mined diamonds cost more in Canada than anywhere else in the world. In addition, the House of Commons finance committee has concluded on more than one occasion that this tax should be abolished.
I encourage the support of all members for my bill.
(Motions deemed adopted, bill read the first time and printed)