UPDATE – Federal: CPA raises tax relief for residential energy with House of Commons Finance Committee

On January 6, CPA Interim President Allan Murphy wrote to members of the House of Commons Finance Committee as part of an effort by the CPA to have energy for residential use be taxed zero-rated. 

The CPA’s November 18 letter to the Prime Minister and the press release, Tax on residential energy should be eliminated in upcoming federal budget, were included in his email to committee members, outlining the reasons for the need to change the tax treatment of residential energy. 

Murphy noted that, “given the high costs of everything these days, the federal government can play a leadership role by reducing taxes on residential energy.

“For the foreseeable future, Canadians will be affected by higher prices on just about everything. Those living in rural areas are particularly exposed, given their increased dependence on fuel for heating their homes, farms, businesses and businesses for transportation, and propane prime power generation for remote locations away from any electrical grid connections.”

The tax change proposed by the CPA would see propane and other heating fuels that are marketed exclusively to domestic consumers for residential purposes be zero-rated. The application would be similar to goods such as most groceries, as well as agricultural and fish products, to name a few. Currently home heating is subject to the full GST/HST. Updating the Excise Tax Act for zero-rated products to include home and residential energy would allow Canadians across the country to enjoy a reprieve of the GST and HST and provide some financial relief.

Murphy requested an opportunity to meet with the Members of Parliament to discuss the zero-rated tax proposal.