June 9, 1981 (32nd Parliament, 1st Session)

LIB

Pierre Bussières (Minister of State (Finance))

Liberal

Hon. Pierre Bussieres (for Mr. MacEachen) moved:

Motion No. 8.
That Bill C-57, an act to amend the Excise Tax Act and the Excise Act and to provide for a revenue tax in respect of petroleum and gas, be amended in clause 7 by striking out lines 11 to 40 at page 9 and substituting the following therefor: "(2) The excise taxes imposed by subsection (1) shall be adjusted
(a) on the first day of April, 1981, so that the taxes imposed in the five month period commencing on that day are equal to the amount obtained
(i) by multiplying
(A) the taxes set out in subsection (1) by
(B) the ratio, adjusted or altered in such manner as the governor in council may, by regulation, prescribe and rounded to the nearest one-thousandth or, where the ratio is equidistant from two one-thousandths, to the greater thereof, that the Alcoholic Beverages Subgroup of the Consumer Price Index for the twelve-month period ending on December 31, 1980, bears to the Alcoholic Beverages Subgroup of the Consumer Price Index for the twelve-month period ending on September 30, 1980, and
(ii) by rounding the product obtained under subparagraph (i) to the nearest one-hundredth of a cent or, if the product is equidistant from two one-hundredths of a cent, to the greater thereof; and
(b) on the first day of September each year, commencing on September 1, 1981, so that the taxes imposed in the twelve-month period commencing on the day the taxes are adjusted are equal to the amount obtained
(i) by multiplying
(A) the taxes set out in subsection (1) by
(B) the ratio, adjusted or altered in such manner as the governor in council may, by regulation, prescribe and rounded to the nearest one-thousandth or, where the ratio is equidistant from two one-thousandths, to the greater thereof, that the Alcoholic Beverages Subgroup of the Consumer Price Index for the twelve-month period ending on the last day of June in that year bears to the Alcoholic Beverage Subgroup of the Consumer Price Index for the twelve-month period ending on June 30, 1980, and
(ii) by rounding the product obtained under subparagraph (i) to the nearest one-hundredth of a cent or, if the product is equidistant from two one-hundredths of a cent, to the greater thereof."
June 9, 1981

He said: Very briefly, Mr. Speaker, I would say that the purpose of this amendment, as it has already been explained, is to make an annual rather than a quarterly adjustment on wines, and also to change the basic period of that adjustment so that it will now end on June 30, 1981. The first quarterly period which had already been established and came into force on April 1 of this year will be maintained until the next basic period comes into effect. As the hon. member for Edmonton West (Mr. Lambert) so aptly put it, that will fulfil the expectations of the industry, while at the same time changing the revenue of the government in that field, since the basic period has been changed.

Topic:   GOVERNMENT ORDERS
Subtopic:   EXCISE TAX ACT AND EXCISE ACT
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