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- News Release 2006-049 -

Notice of Ways and Means Motion to amend the Excise Tax Act

That it is expedient to amend the Excise Tax Act in accordance with the proposals set out in the attached schedule.


Schedule

Detailed Proposals on the Elimination of the GST Visitor Rebate Program

This schedule provides information on proposed amendments to the Excise Tax Act that would eliminate the goods and services tax (GST) Visitor Rebate Program effective April 1, 2007. References to the GST should be read as references to the GST and the federal component of the harmonized sales tax (HST). Details regarding the provincial component of the HST as it relates to the Visitor Rebate Program will be provided at a later date.

The GST is a value-added tax that applies to the vast majority of goods and services in Canada. The Visitor Rebate Program provides GST relief in respect of goods exported from Canada by non-residents, short-term accommodation and certain tour packages for non-residents, and certain property and services used in the course of conventions held in Canada.

The Visitor Rebate Program is proposed to be eliminated effective April 1, 2007, as part of the package of specific spending restraint measures announced by the Government on September 25, 2006. Under the proposed amendments, if a written agreement for a supply to which GST relief applies was entered into prior to Announcement Date, the relief would generally continue to be available (as described below) to recognize the fact that contracts may have been negotiated based on the availability of that relief. In addition, the current one-year period to claim a rebate would continue to apply.

The proposed amendments would apply as follows:

Goods

Accommodation

Tour Packages

Conventions

Sponsors and Organizers of Foreign Conventions

Admissions to Conventions

Exhibitors

- News Release 2006-049 -