Qujannamiik. Bill 6, An Act to Amend the Petroleum Products Tax Act. Mr. Pollard, do you have opening remarks for the committee?
Minister's Introductory Remarks
Bill 6: An Act To Amend The Petroleum Products Tax Act
In the Legislative Assembly on February 22nd, 1995. See this topic in context.
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The Chair John Ningark
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John Pollard Hay River
Thank you, Mr. Chairman. Mr. Chairman, the amendment to the Petroleum Products Tax Act provides that the purchase of fuel for resale outside the Northwest Territories is exempt from petroleum products taxes.
This amendment is necessary because the Department of Justice has advised that the current wording of the Petroleum Products Tax Act is unclear as to whether the purchase of fuel in the Northwest Territories for resale in foreign locations is taxable.
When a person purchases fuel in the Northwest Territories, the tax is collected by the vendor when delivered. If the fuel purchased is intended for resale in a foreign location, the imposition of the tax at the time of purchase in the territories could be challenged as being beyond the direct taxation authority of the Government of the Northwest Territories.
The current administrative means of providing an exemption for fuel resales to offshore locations is administratively inefficient for industry and government and a financial burden to industry. A person must first pay the tax and then apply for a remission order which must be approved by Cabinet.
Mr. Chairman, this amendment also provides that sales between collectors are not taxable. Under the current administrative collection scheme, the government appoints companies to act as tax collectors. To charge a collector the tax at the point of delivery for resale to another collector would be a financial burden on a company that is acting on behalf of the government.
The amendment also provides that all references to the Comptroller General in the act be changed to the Minister of Finance. As well, references to the Commissioner are changed to the Minister of Finance. This amendment is necessary to reflect organizational changes in the Department of Finance and the Financial Management Board Secretariat.
In addition, Mr. Chairman, the amendment provides that administrative matters are the responsibility of the deputy minister and simplifies wording in the act. Thank you, Mr. Chairman.
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The Chair John Ningark
Thank you, Mr. Minister. On behalf of the Standing Committee on Legislation, Mr. Tony Whitford, do you have opening remarks?
Standing Committee On Legislation Comments
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Tony Whitford Yellowknife South
Thank you, Mr. Chairman. Yes, indeed, I do. Good afternoon, Mr. Chairman. On behalf of the Standing Committee on Legislation, I am pleased to present the report on Bill 6, An Act to Amend the Petroleum Products Tax Act.
Mr. Chairman, the Standing Committee on Legislation has completed its review of Bill 6, An Act to Amend the Petroleum Products Tax Act. The committee held public hearings in Yellowknife on Monday, January 9, 1995. Although public input was encouraged, there were no presentations made on this bill.
Bill 6 proposes to amend the Petroleum Products Tax Act to clarify that a collector who delivers or sells petroleum products to another collector shall not collect a tax on the product. The bill also proposes to amend the provisions of the act that pertain to importers of petroleum products and the procedures for the export of petroleum products. In addition, a number of administrative changes are proposed regarding references to the Comptroller General, the Commissioner, the Minister and the government.
The committee is satisfied that the proposed amendments are required to clarify the taxation authority of the Government of the Northwest Territories with respect to petroleum products and improve efficiency in the administration of the act.
In addition, the standing committee passed a motion to amend Bill 6 by adding a clause to clarify that clause 4 of the bill does not apply to the Minister with respect to certain record-keeping requirements.
Mr. Chairman, this concludes the standing committee's report on Bill 6. On January 9, 1995, the committee passed a motion that Bill 6, An Act to Amend the Petroleum Products Tax Act, be reported to the Legislative Assembly as ready for consideration in committee of the whole, as amended and reprinted. Thank you.
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The Chair John Ningark
Thank you, Mr. Whitford. Before I open the floor to general comments, I would like to ask the honourable Minister if he wishes to bring in his witnessses.
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John Pollard Hay River
If I might Mr. Chairman. Thank you.
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The Chair John Ningark
Do we have the blessing of the committee that the Minister bring in the witnesses? Agreed?
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Some Hon. Members
Agreed.
---Agreed.
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The Chair John Ningark
Thank you. Proceed.
Thank you. For the record, Mr. Minister, would you introduce the witnesses to the committee.
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John Pollard Hay River
Thank you, Mr. Chairman. Mr. Chairman, I have Diane Buckland with me who is legislative counsel with the Department of Justice, GNWT, and Mr. Tony Dawson who is the director of revenue and asset management for the Government of the Northwest Territories. Thank you, Mr. Chairman.
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The Chair John Ningark
Thank you. The floor is no open for general comments. General comments on Bill 6, An Act to Amend the Petroleum Products Tax Act. General comments. Do you wish to go clause by clause?
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Some Hon. Members
Agreed.
---Agreed
Clause By Clause
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The Chair John Ningark
Thank you. Clause 1.
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Some Hon. Members
Agreed.
---Agreed
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The Chair John Ningark
Thank you. Clause 2.
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Some Hon. Members
Agreed.
---Agreed
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The Chair John Ningark
Thank you. Clause 3.
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Some Hon. Members
Agreed.
---Agreed
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The Chair John Ningark
Thank you. Clause 4.
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Some Hon. Members
Agreed.
---Agreed
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The Chair John Ningark
Qujannamiik. Clause 5. Agreed?
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Some Hon. Members
Agreed.
---Agreed
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The Chair John Ningark
Thank you. Clause 5.1, as this is a reprint. Clause 5.1. Agreed?
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Some Hon. Members
Agreed.
---Agreed
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The Chair John Ningark
Thank you. Clause 6.
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Some Hon. Members
Agreed.
---Agreed
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The Chair John Ningark
Qujannamiik. Clause 7. Agreed?
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Some Hon. Members
Agreed.
---Agreed
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The Chair John Ningark
Thank you. Clause 8. Agreed?
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Some Hon. Members
Agreed.
---Agreed
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The Chair John Ningark
Thank you. Clause 9.
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Some Hon. Members
Agreed.
---Agreed
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The Chair John Ningark
Thank you. Clause 10.
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Some Hon. Members
Agreed.
---Agreed
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The Chair John Ningark
Thank you. Clause 11.
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February 21st, 1995
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Some Hon. Members
Agreed.
---Agreed
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The Chair John Ningark
Thank you. Clause 12.
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Some Hon. Members
Agreed.
---Agreed
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The Chair John Ningark
Clause 13 of Bill 6. Agreed?
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Some Hon. Members
Agreed.
---Agreed
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The Chair John Ningark
Thank you. Clause 14 of Bill 6. Agreed?
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Some Hon. Members
Agreed.
---Agreed
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The Chair John Ningark
Bill as a whole. Agreed?
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Some Hon. Members
Agreed.
---Agreed
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The Chair John Ningark
Thank you. Does the committee agree that Bill 6 is ready for third reading?
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Some Hon. Members
Agreed.
---Agreed
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The Chair John Ningark
Thank you. Bill 6 is now ready for third reading. Qujannamiik. I would like to thank the Minister and the witnesses. Thank you.