OTTAWA, Sept. 06, 2022 (GLOBE NEWSWIRE) — As the Prime Minister meets along with his federal cupboard to take a look at methods to make life extra affordable for households, his authorities ought to strongly re-consider a advice by the Canadian Propane Association (CPA) to make HST/GST zero-rated for residential power.
“In November 2021, the CPA wrote to the Prime Minister proposing that the government make a legislative change to Part IX of the Excise Tax Act that would categorize residential heating fuels such as propane, as zero-rated for purposes of the GST/HST. In Canada, winter heating is essential and our members feel strongly that tackling heating costs is one direct way to address the higher cost of living in 2022 and beyond,” mentioned Shannon Watt, President and CEO of the CPA.
In asserting the cupboard retreat, the Prime Minister famous that after spending the summer season speaking to folks in communities throughout the nation, he’s trying ahead to a productive cupboard assembly that may construct on the federal government’s efforts to make life extra affordable for Canadians.
“Over the past several months we have seen 30- to 40-year highs in the inflation rate with no indication of a return to two per cent levels anytime soon. With the winter season coming, immediate action is needed to reduce the cost of residential energy,” mentioned Watt. “Our 400 plus members are hearing from their customers that they are alarmed at the rising residential heating costs, which is why we propose immediate government action to make essential residential heating more affordable for Canadians.”
Currently, residential power is topic to the total GST/HST. The zero charge might apply to residential homes, condominiums and different comparable dwellings, senior care amenities, hospices, college and college residential lodging, monasteries, nunneries, and comparable spiritual communities, in addition to armed forces housing.
The change would see low-emission propane and different heating fuels which might be marketed completely to home shoppers for residential functions be zero-rated. The software could be comparable for items corresponding to most groceries, in addition to agricultural and fish merchandise, amongst others.
“While government coffers benefit from higher energy prices, this cannot be on the backs of hard-working Canadians. There should be agreement by this government to make essential residential heating HST/GST zero-tax rated, at least until the inflation rate returns to two per cent. That would be a crucial step in helping make life more affordable for all Canadians this winter,” mentioned Watt.
About the Canadian Propane Association
With roughly 400 members, the Canadian Propane Association (CPA) is the nationwide affiliation for a rising, multi-billion-dollar trade that impacts the livelihood of tens of hundreds of Canadians. The CPA develops and produces trade coaching supplies, affords an emergency response help plan to its members, and gives advocacy companies for the propane trade. The CPA doesn’t monitor or present an evaluation of propane costs or provide and can’t touch upon particular person companies’ operations.
For additional info, contact: Tammy Hirsch, Sr. Director, Communications and Marketing by e mail: [email protected] or cellphone: 587-349-5876.
