Thank you, Mr. Chairman. I am pleased to introduce Bill 1, An Act to Amend the Petroleum Products Tax Act. This bill will address the ambiguity with the definition of the type of equipment that is subject to the motive diesel tax rate when consuming diesel fuel in its operation.
The new definition will clarify the intent of the Petroleum Products Tax Act that, with some exceptions, the motive diesel tax rate applies to all mechanical mobile contrivances including motor vehicles, cranes, excavators, backhoes, and drills on tracks if they are self-propelled when powered by diesel fuel.
The proposed amendment will be retroactive to 1991 and will come into force immediately upon assent.
Although not commonly used by the NWT, retroactive legislation of this nature has been used in similar circumstances in other jurisdictions in Canada.
This amendment is a very narrow one, focussing on one very specific issue. We recognize that the Petroleum Products Tax Act is a very old act, requiring review and updating to reflect the current
environment. Work is ongoing in this regard. Mr. Chairman, that concludes my opening remarks. Thank you.