Taxation

During oral questions on taxation, Conservatives pressed the government to support their bill, the Used Car Tax Cut Act, which would remove the GST from used vehicle sales by making them zero-rated under the Excise Tax Act. They argued used car prices have roughly doubled in recent years, that the same car can be taxed multiple times as it is resold, and that families depend on vehicles to get around. Liberal ministers replied by listing the government’s affordability measures, including the suspension of the federal excise tax on gasoline, the removal of the GST for first-time homebuyers, and programs such as dental care, child care and grocery supports, and said Conservatives should vote for those plans rather than only complain. Several exchanges also turned to broader arguments about which party’s record on affordability was stronger.Written by AI from the debate. Updated .

Official text (opens in a new tab)

8 statements

Andrew Lawton, Elgin—St. Thomas—London South

Conservative
“Used cars cost too much, and the government taxes them every time they are sold. I want the government to support our bill to take the sales tax off used cars.”
Official Hansard

Mr. Speaker, we know how bad inflation has gotten in Canada. We know grocery prices are through the roof. Fuel prices are skyrocketing, and even the cars that Canadians need to fuel up are becoming more and more unaffordable for the middle class. The prices of used cars have doubled in the last seven years in this country, and the government is still putting the federal sales tax on them each and every time they are sold, sometimes collecting double, triple or quadruple revenue off the backs of Canadians. Conservatives come armed with solutions. We have Bill C-285, which would take the GST off of used cars and save Canadians thousands. Will the Liberals support it?

Wayne Long, Secretary of State (Canada Revenue Agency and Financial Institutions)

Liberal
“Our government has always worked to make life more affordable for Canadians. We cut taxes on new homes and fuel, and we sent people money for food and basic needs. We will keep focusing on helping with costs, while the Conservatives only make empty noise.”
  • Government answer in Question Period

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Official Hansard

Mr. Speaker, from day one, we have been focused on delivering affordability measures for Canadians. Let us talk about the removal of the GST for first-time homebuyers. Let us talk about the pause on the federal excise tax. That is 10¢ a litre. Combine that with the removal of the carbon tax, and it is a 28¢-per-litre savings. We just launched the groceries and essentials benefit. We just announced the 50% payment a week and a half ago. On this side of the House, we will continue to focus on affordability. The Conservatives will focus on rhetoric and bluster.

Fred Davies, Niagara South

Conservative
“The price of used cars has doubled because of this government. Taxing used cars is wrong. I want the government to remove the GST from used car sales.”
Official Hansard

Mr. Speaker, there is no rhetoric or bluster here, as the minister does his fancy dance over there. The price of used cars has more than doubled over the last several years as a result of the government’s inflationary policies. Taxing a vehicle twice is wrong. We on this side believe that cars are not a luxury, and for many people, they are a lifeline. On this side of the House, we would zero-rate used vehicles under the Excise Tax Act. Will the Liberals stop profiting off of inflation and remove GST from the sale of used cars in this country?

Wayne Long, Secretary of State (Canada Revenue Agency and Financial Institutions)

Liberal
“I have run a business, but the Conservative leader has not. During hard times, you can either blame others or take action to fix things and find new trade partners. Our government is taking action to make Canada strong, while the Conservatives just complain.”
  • Government answer in Question Period

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  • A repeated line

    “We are going to build Canada strong.”

    Said 33 times by 14 members since April 24.

    Every time it was said
Official Hansard

Mr. Speaker, I have actually had the privilege of running a private business in the economy, unlike the Conservative leader. When an economy or a business is faced with adversity, we have two choices. We can wave our hands around, blame everybody else and offer nothing constructive, or we can actually lead. We can rebuild. We can restructure. We can build new trade relationships. On this side of the House, that is what our Prime Minister and our international trade minister are doing. We are going to build Canada strong. They are going to continue with the rhetoric.

Gérard Deltell, Louis-Saint-Laurent—Akiawenhrahk

Conservative
“Used cars cost twice as much as they did seven years ago, and families need them to get around. We want the government to remove the GST from used cars. I want the Liberals to say if they agree with us.”
Official Hansard

Mr. Speaker, used car prices have doubled over the last seven years. The average price of a used car is now $36,000. That is a lot of money, especially for families in the regions who need a car to get to work and get around. We think only one tax should apply to used cars, but unfortunately, used cars are still also subject to GST. We want to take the GST off used cars. The Liberals have already axed the carbon tax, as the Conservatives were calling for. Do they agree with us that there should be no GST on used cars?

Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant

Liberal
“We paused the gas tax for the summer to help people save money. If the Conservatives care about high costs, they should vote for our other plans, like dental care, grocery help, and middle-class tax cuts.”
  • Government answer in Question Period

    Relevance 27 of 100

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Official Hansard

Mr. Speaker, this gives me an opportunity to remind everyone that we have suspended the excise tax on gasoline for the summer, providing relief for consumers and boosting Canadians’ purchasing power. However, we are not stopping there. The Conservatives claim that affordability is an issue they care about. I urge them to support us on the Canada groceries and essentials benefit, the Canadian dental care plan, the tax cut for 22 million Canadians, and our other measures.

Andrew Lawton, Elgin—St. Thomas—London South

Conservative

Linked statement

“I want the government to support our bill and remove the GST from used cars. Driving is a necessity, and used cars get taxed over and over again.”
Official Hansard

Mr. Speaker, if we took the tax off all used goods, their talking points would be tax-free. We asked the question four times, and got zero answers. We came with a solution: a Conservative bill to save Canadians thousands of dollars by taking the GST off used cars, which are taxed two, three and even four times, as many times as the Liberals avoided answering the question. It is a very simple question: In my part of the country and for MPs across the House, driving is not a luxury but a necessity, so will the Liberals join us and take the GST off used cars?

Kody Blois, Parliamentary Secretary to the Prime Minister

Liberal
“I am glad the Conservatives are finally talking about lowering costs for people. But for years, they have voted against our programs that help families, like child care, school food, and tax cuts. I want them to start voting for our plans to help Canadians.”
  • Government answer in Question Period

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Official Hansard

Mr. Speaker, I will give the Conservatives credit. They are now talking about actual measures that could support affordability, but I would ask them where they have been for the last number of months and years. I have been a member of Parliament for seven years in the House, and it does not matter if it is the Canada child benefit, national child care, the national school food program or the tax measures we have put in place, consistently, the Conservatives vote against these measures. We appreciate that they are finally talking about affordability, but we would ask them to actually support the measures the government consistently puts at the front to help support Canadians across the board. It is good that they are now talking, but why do they not get on board with some of the initiatives that we have had for years now?

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