Mr. Speaker, the federal price on pollution is revenue neutral for the federal government; the direct proceeds from the federal pollution pricing system remain in the province or territory where they are collected. Put simply, every dollar collected from the pollution price is returned.
In Yukon and Nunavut, the direct proceeds from the federal fuel charge are returned to the governments of these jurisdictions. In provinces that do not have a fuel charge consistent with the federal benchmark, that is, Ontario, Manitoba, Saskatchewan and Alberta, 90% of direct proceeds from the federal fuel charge are returned to residents of those provinces through climate action incentive, or CAI, payments. As of July 1, 2023, the federal fuel charge will newly come into effect in Newfoundland and Labrador, Prince Edward Island and Nova Scotia. Residents of these provinces will start receiving quarterly CAI payments when the charge comes into effect. Most households receive more in CAI payments than the costs they face from the federal price on pollution.
With respect to the goods and services tax/harmonized sales tax, or GST/HST, the GST/HST is a broad-based tax that is calculated on the final amount charged for a good or service. The general rule that was adopted at the inception of the GST, under the Mulroney government, and carried over for the HST, is that this final amount includes other taxes, levies and charges that apply to the good or service and are generally embedded in the final price. This long-standing approach to calculating the GST/HST helps to maintain the broad-based nature of the tax and ensures that tax is applied evenly across goods and services consumed in Canada. It also makes it easier for vendors to calculate the amount of tax payable, for consumers to understand and for the Canada Revenue Agency to administer.
With respect to the amounts of GST/HST that may be collected on supplies of specific goods and services that are subject to pollution pricing, no such data are available. Suppliers of goods and services in Canada report and remit the total amount of GST/HST collected on all of their taxable supplies to the Canada Revenue Agency during a GST/HST reporting period and do not report the GST/HST collected or remitted in respect of specific goods and services.
The GST credit helps offset the financial impact of the GST for low- and modest-income people and families. The credit is paid quarterly in January, April, July and October. For the July 2022 to June 2023 benefit year, the GST credit provides up to $467 for single Canadians and up to $934 for couples with two children. To support those most affected by inflation, starting November 4, 2022, an estimated 11 million low- and modest-income people and families will receive an additional GST credit payment, equivalent to doubling the credit for six months. Single Canadians without children will receive up to an extra $234, and couples with two children will receive up to an extra $467. Seniors will receive an extra $225 on average.