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SUMMARY |
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These amendments to the Excise Tax Act, the Excise Act and the
Income Tax Act implement a number of key measures included in the
federal action plan on tobacco smuggling. The amendments to the
Excise Tax Act also implement the changes to the air transportation tax
and the goods and services tax that were announced in the February 22,
1994 budget.
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The measures that are part of the action plan on tobacco smuggling
are:
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The amendments to the air transportation tax reduce the tax burden
on short-haul domestic and transborder flights and shift the tax burden
to long-haul flights.
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The amendment to the goods and services tax reduces the percentage
of GST paid on business meals and entertainment that may be
effectively recovered as an input tax credit from 80% to 50%.
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