Debates of November 30, 2007 (day 6)

Thank you, Mr. Speaker. I think my question is for the Premier. A lot of people are involved in activities where they consume petroleum products in the North that have nothing to do with using our roads and yet there is a road tax component on gasoline and diesel. I am thinking along the same vein as the folks involved in agriculture who need petroleum products, and people involved in the commercial fishing industry. I don’t know why fuel for their vessels should be contributing to a road tax. Also, harvesters that are involved in traditional hunting and trapping activities are all paying a tax. Their activities would be more sustainable if their costs of doing business would be lowered. Why can’t we, as a government, come up with a way of not creating a cumbersome administration on trying to decipher at the point of sale what is going to be used for what purpose, but why can’t we come up with a receipt program just like you would when you file your income tax and if you own a small business, where you are allowed to submit receipts for a rebate based on certain activities? Why couldn’t we come up with something like that to alleviate the cost of living on some of these activities that have nothing to do with roads? Thank you.

Thank you, Mrs. Groenewegen. The honourable Premier, Mr. Roland.

Return To Question 85-16(1): Gas Tax Rebate For Non-Transportation Industries

Thank you, Mr. Speaker. I believe the last time there was a differentiation between the type of gasoline for transportation versus agriculture or fishing, I recall many years ago it was referred to as purple gas. It was used in equipment outside of transportation. We, as the GNWT, hadn’t put that in place. We could look at options of doing that. We would recognize a certain amount of lost income. The problem I think that becomes bigger is the administration of something like that. How it would work is something that we would have to work around, as well. Thank you.

Thank you, Mr. Roland. Supplementary, Mrs. Groenewegen.

Supplementary To Question 85-16(1): Gas Tax Rebate For Non-Transportation Industries

Thank you, Mr. Speaker. Yes, I think we did determine that trying to determine the use of the product at point of sale was too difficult and too cumbersome. It is understood and agreed we can’t do that. We can’t even keep track of the difference between stuff going for diesel for home heating fuel to diesel going for filling your vehicle. We can’t even keep that straight. So I don’t suggest that we try to do it at the point of sale. What I am suggesting is that somehow when people file their personal income tax return and they are involved in those activities which are included in their return, that they be able to submit receipts and get a rebate for the portion of the tax related to on road. That is what I am suggesting. Thank you.

Thank you, Mrs. Groenewegen. Mr. Roland.

Further Return To Question 85-16(1): Gas Tax Rebate For Non-Transportation Industries

Thank you, Mr. Speaker. Mr. Speaker, that area would take a fair bit of work as we work with the federal government in collection and remittance of our personal income tax in the Northwest Territories. I am sure there are ways of looking at our portion to see if we can make something like this happen. As we know, there are other ways already. If you have a small business, you can remit receipts for certain areas and have an impact on your taxation side. I would have to look at that if that is already available to people in this area, but that’s something we can look at working at.

Thank you, Mr. Roland. Time for question period has expired; however, I will allow the Member a supplementary. Mrs. Groenewegen.

Supplementary To Question 85-16(1): Gas Tax Rebate For Non-Transportation Industries

Thank you, Mr. Speaker. Okay, if it’s difficult to do that with the federal government, what about the people involved in these activities just submitting these receipts to this government for a rebate on the fuel for the tax portion only related to roads? That should not be too difficult to administer. Just submit their receipts in these activities for a rebate on their fuel purchases. Thank you.

Thank you, Mrs. Groenewegen. Mr. Roland.

Further Return To Question 85-16(1): Gas Tax Rebate For Non-Transportation Industries

Thank you, Mr. Speaker. The one thing I have learned having the Finance portfolio and the whole taxation side and how fuel moves from one location in the territory to another or even from one tank to another, how the categories can change. The big issue will be, as we look at developing a program, is how it would be administered and how do we ensure people are putting the right claims in is an area. That’s something we can work on. I think it’s an interesting area and I would be prepared to sit down with Members to see if we can work this out a little further and look at what we might be able to bring forward. Thank you.

Thank you, Mr. Roland. Final supplementary, Mrs. Groenewegen.

Supplementary To Question 85-16(1): Gas Tax Rebate For Non-Transportation Industries

Thank you, Mr. Speaker. Yes, I was asked to raise this by the Territorial Farmers’ Association and I realize that it may be cumbersome, but the cost of doing business is continually going up. The price of the product is not going up. This is discouraging people from being involved in any of our renewable resource sector activities that are not involved with roads. The cost of fuel, it’s going to be an all-time high now again. I look forward to working with the Minister on trying to find some way of alleviating the cost of doing business in these sectors. Thank you.

Thank you, Mrs. Groenewegen. The honourable Member for Yellowknife Centre, Mr. Hawkins.

Thank you, Mr. Speaker. I seek unanimous consent to return to oral questions. Thank you.

The Member is seeking unanimous consent to return to oral questions. Are there any nays? There are no nays. We will return to oral questions. Before we do, the chair is going to call a break.

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