A new private member’s bill introduced in the House of Commons last month is calling on the federal government to rectify a long-standing tax issue that will help Canadian school authorities save millions of dollars a year.
Kevin Waugh, the MP for Saskatoon-Grasswood, would like to see Canadian schools become exempt from paying federal taxes. Under the Excise Tax Act, Canadian schools already receive a reimbursement on 68 per cent of the GST they shell out each quarter. In his bill, the MP wants to amend the act to have schools reimbursed for the full amount.
“Canadians pay for their schools either through municipal or provincial taxes. These schools are then charged 100 per cent GST on almost everything they purchase,” Waugh explained, adding that this is essentially a tax on tax. “(Schools) are subsequently reimbursed 68 per cent of the GST after completing cumbersome and time-consuming paperwork, quarterly. My bill seeks to amend the Excise Tax Act to have the school authorities reimbursed 100 per cent.”
As a former executive member on the Saskatchewan School Boards Association and a long-serving trustee on the Saskatoon Board of Education, Waugh says he has wanted to change this tax law for some time. Now that he is an MP, he hopes his voice will have more reach and impact.
If he is successful in getting this amendment passed, the additional 32 per cent reimbursement will save tax payers millions of dollars each year (he says approximately $8.7 million a year for Saskatchewan alone). “It’s so little, that would mean so much, to so many,” Waugh stressed. “I’m hoping to get everyone on board and get this passed.”
Waugh is asking his colleagues in the House of Commons to support his efforts with this bill and is also hoping school authorities across the country will speak to their local MPs. Waugh was one of the MPs who attended the CCSTA special reception on Parliament Hill two weeks ago and tried to shed more light on the issue with association members.
CCSTA Board Director Marino Gazzola said in a recent interview that he is looking to gauge a response from his colleagues on the matter.
“It certainly has merit for all school boards. His bill would increase the rebate to 100 per cent, which would mean more money for the boards – always a good thing,” Gazzola said. “He asked that we as a national organization speak with our local MPs to gauge and garner support for this bill. I have placed the matter on the agenda for my local board’s monthly meeting to get an initial feel. We will see how that goes.”
If you would like more information on Waugh’s private member’s bill you can visit www.kevinwaugh.ca or phone his Ottawa office at 613-995-5653.
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