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Double tax targeted

Bill hopes to remove GST from being levied on the carbon tax
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The fight over a tax on a tax is gaining strength.

Mel Arnold, North Okanagan-Shuswap MP, seconded a private member’s bill in the House of Commons Monday that calls for the goods and services tax to be removed from carbon tax.

“It’s a tax on a tax and it’s an unfair way of dealing with provinces,” said Arnold.

The private member’s bill by Langley MP Mark Warawa was a result of a petition initiated by Bob Spiers, a Vernon city councillor.

“I’m happy with the bill. It may persuade the government to do the right thing,” said Spiers.

The gstar.com/news/409682095.html” target=”_blank”>petition was launched Jan. 4 and it currently has 1,300 signatures. The petition closes May 4.

B.C. initiated a carbon tax in 2008 and the five per cent federal GST is levied on it.

About $85 million in GST is expected to be collected in B.C. in 2017/18, and despite assurances from the federal government that the carbon tax would be revenue neutral and the funds would stay in the province, Arnold says that’s not the case.

“It’s unfair that Canadians have to pay a tax on a tax,” he said referring to heating homes and fuelling vehicles.

Arnold believes the federal government will have to change its policies.

“When Canadians realize what’s taking place, they won’t be happy. I hope they pressure the government to exempt the carbon tax from the GST,” he said.