Feds take tax off poppies
By Nelson Daily Staff
The federal government will remove the sales tax from the purchase of poppies and wreaths for the Legion’s annual poppy campaign.
When the Harmonized Sales Tax was implemented in Ontario and B.C. this summer, the production of poppies fell under the new tax system since a private firm in Toronto makes the poppies.
This means they would have been subjected to a 13 per cent tax. The new decision will save Legions across the country around $780,000 a year.
“Charging HST on poppies and wreaths is just plain wrong,” said BC Southern Interior New Democratic MP Alex Atamanenko.
“The poppy campaign is a crucial fundraising tool for the Royal Canadian Legion. By charging 13 per cent HST on the purchase of poppies, the federal government was inadvertently hurting veterans and their families.”
The HST comes at an unfortunate time, said Atamanenko, as legions need those funds more than ever to support the military, police and veterans, and their families.
An NDP Private Members Bill, C-480, An Act to amend the Excise Tax Act, first tabled on Nov. 5, 2009, called for the tax to be removed from poppies and wreaths purchased for the benefit of veterans, and would allow the legions to recoup the five per cent federal portion of the HST.
Distribution of the national campaign is set to roll out on Oct. 29 in advance of Remembrance Day on Nov. 11. Approximately 18 million poppies are distributed each year in remembrance of Canada’s military service around the world.
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