2017 Federal Budget

2017 Federal Budget - Sales Tax, Excise Tax, and Other Measures

2017 Federal Budget

Opioid Overdose Treatment Drug — Naloxone

When Health Canada began allowing Naloxone to be dispensed without a prescription, the drug’s historical GST/HST exemption was technically lost. The Budget proposes to include Naloxone on the list of GST/HST-free non-prescription drugs to restore its GST/HST-free status.

Taxi and Ride-Sharing Services

To ensure that the GST/HST applies consistently to taxi services and ride-sharing services, effective July 1, 2017, the definition of a taxi business will be amended to require providers of ride-sharing services to register for the GST/HST and charge tax on their fares in the same manner as taxi operators.

Elimination of Non-Resident GST/HST Rebate for Tour Package Accommodations

The GST/HST rebate available to non-resident individuals and tour operators in respect of the accommodation portion of eligible tour packages will be repealed effective March 23, 2017, subject to a transitional exemption in respect of eligible tour packages supplied and paid for prior to January 1, 2018.

Tobacco and Alcohol Taxation

Effective March 23, 2017, the Budget proposes to repeal the 10.5 per cent surtax on manufacturers of tobacco products with a coordinated increase to the excise duty rates on tobacco.

Excise duties on alcohol products are proposed to be increased by two per cent, effective March 23, 2017, with annual indexing of rates thereafter.

Custom Tariff and Special Import Measures

The Budget proposes a number of amendments to the Special Import Measures Act and related regulations which are intended to strengthen Canada’s trade remedy system and ensure that it is aligned with Canada’s obligations under World Trade Organization rules.