Date: November 6, 2008-11-06

To: Chief Financial Officers and Deputy Chief Financial Officers

From: John Morgan, Assistant Comptroller General, Office of the Comptroller General

This Policy Notice is to advise you that as of July 1, 2008, federal government departments will pay the British Columbia Carbon Tax under the current terms of the RTA between the Government of Canada and the Province of British Columbia.

The British Columbia Carbon Tax meets the definition of "provincial tax or fee" as defined in the agreement:

"Provincial Tax or Fee" means a provincial tax or fee as defined in subsection 31(1) of the Federal Provincial Fiscal Arrangements Act, other than the Provincial Sales Tax, and includes any such tax or fee which is imposed or levied under any of the following statutes:

  1. the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317,
  2. the Commercial Transport Act, R.S.B.C. 1996, c. 58,
  3. the Passenger Transportation Act, S.B.C. 2004, c. 39,
  4. the Motor Vehicle Act, R.S.B.C. 1996, c. 318,
  5. the Motor Vehicle (All Terrain) Act, R.S.B.C. 1996, c. 319,
  6. the Tobacco Tax Act, R.S.B.C. 1996, c. 452, and
  7. the Hotel Room Tax Act, R.S.B.C., 1996, c. 207.

The British Columbia Carbon Tax will not have to be accounted for separately. Therefore, no new financial coding will be issued.

Enquiries:

For technical questions regarding the British Columbia Carbon Tax, please contact the province directly. Contact information for the province can be found on the following website: http://www.gov.bc.ca/sbr/contacts.html.

Should your staff require additional information on this subject, they can also contact Anna Marinelli, Senior Policy Analyst, Financial Management Policy Division (FMPD), Office of the Comptroller General, at 613-954-3692 or by e-mail at Anna.Marinelli@tbs-sct.gc.ca.

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