S-212
Third Session, Fortieth Parliament,
59 Elizabeth II, 2010
SENATE OF CANADA
BILL S-212
An Act to amend the Excise Tax Act (tax relief for Nunavik)
first reading, March 10, 2010
THE HONOURABLE SENATOR WATT
3910622
SUMMARY
This enactment provides tax relief in Nunavik by amending the Excise Tax Act to provide for a 0% GST tax rate on the supply of goods and services in Nunavik and to exempt petroleum products and fuels sold or purchased in Nunavik from certain excise and consumption or sales taxes.
Available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca
3rd Session, 40th Parliament,
59 Elizabeth II, 2010
senate of canada
BILL S-212
An Act to amend the Excise Tax Act (tax relief for Nunavik)
Preamble
Whereas the people of Nunavik, in the Province of Quebec, most of whom are Inuit, are experiencing a fiscal imbalance owing to the fact that their cost of living is exorbitant compared with that of Canadians living south of the fifty-fifth parallel;
Whereas the people of Nunavik are cut off from other Canadians geographically, economically and politically, and their living conditions are desperate and deteriorating further because of isolation and distance;
Whereas the high cost of transportation has a direct impact on the cost of goods and services, and this seriously limits people's purchasing power;
Whereas, on a per capita basis, the Inuit are the most heavily taxed people in Canada;
Whereas the level of taxation erodes people's savings and makes it extremely difficult for small businesses to operate at a profit;
Whereas tax relief is necessary to promote economic prosperity and social well-being in Nunavik;
And whereas the Parliament of Canada recognizes the need to act in order to remove the economic injustice endured by the people of Nunavik;
Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
R.S., c. E-15
EXCISE TAX ACT
1. Subsection 2(1) of the Excise Tax Act is amended by adding the following in alphabetical order:
“Nunavik”« Nunavik »
“Nunavik” has the meaning assigned to the word “Territory” by An Act respecting Northern villages and the Kativik Regional Government, Chapter V-6.1 of the Revised Statutes of Quebec, as amended from time to time; 
2. Subsection 50(5) of the Act is amended by striking out “or” at the end of paragraph (k), by adding “or” at the end of paragraph (l) and by adding the following after paragraph (l):
(m) sold or purchased in Nunavik, if the goods are goods enumerated in Schedule II.1 or Part VI of Schedule III. 
3. Schedule I to the Act is amended by adding the following after section 9.1:
9.2 Sections 9 and 9.1 do not apply in respect of any of the goods mentioned in those sections that are sold or purchased in Nunavik.
4. Schedule VI to the Act is amended by adding the following after Part X:
PART XI
NUNAVIK
1. In this Part, “Nunavik” has the meaning assigned to the word “Territory” by An Act respecting Northern villages and the Kativik Regional Government, Chapter V-6.1 of the Revised Statutes of Quebec, as amended from time to time. 
2. A supply of property or a service made in Nunavik.
COMING INTO FORCE
Coming into force
5. This Act comes into force on January 1 of the year following the year in which it receives royal assent.
Published under authority of the Senate of CanadaAvailable from:Publishing and Depository ServicesPublic Works and Government Services Canada
Explanatory Notes
Excise Tax Act
Clause 1: New.
Clause 2: Relevant portion of subsection 50(5):
(5) Notwithstanding anything in subsection (1), the consumption or sales tax shall not be payable on goods
Clause 3: New.
Clause 4: New.