Hon. Donald M. Fleming (Minister of Finance):
Mr. Speaker, in keeping with the practice I followed in previous years I should like to give notice of an amendment to the Excise Tax Act resolution which I intend to move when this resolution comes before the committee of ways and means in due course. The amendment is merely to change the effective date of paragraph 7 of the Excise Tax Act resolution.
The paragraph in question deals with the liability for sales tax when certain equipment is diverted from a tax exempt use to a taxable use. It now provides that legislation based thereon is to become effective from budget night. The amendment I propose provides that this legislation shall come into force on receiving royal assent. In view of the expected delay in the enactment of legislation based on the budget resolutions it is considered that this paragraph, which concerns the administration and collection of sales tax, should not be considered as having come into effect on budget night and instead should await the passage of legislation.
I think I should give the text of the proposed amendment.
That paragraph 9 of the Excise Tax Act resolution be amended to read as follows:
"9. That any enactment founded on paragraphs 1 to 6 of this resolution be deemed to have come into force on April 11, 1962, that any enactment founded on paragraph 7 of this resolution shall come into force on the date the said enactment is assented to, and that any enactment founded on paragraph 8 of this resolution be applicable in respect of contracts of insurance entered into or renewed after April 10, 1962."
Subtopic: AMENDMENT OF RESOLUTION RESPECTING SALES TAX