Good afternoon, my name is Gervais Coulombe and I am acting director general of the Sales Tax Division at the Department of Finance.

Part 3 of Bill C‑69 contains various budget measures amending the Excise Tax Act, the Excise Act, the Excise Act, 2001, the Underused Housing Tax Act, part 1 of the Greenhouse Gas Pollution Pricing Act and other related texts.

The first measure under Division 1 would end the temporary GST/HST relief of certain face masks or respirators and certain face shields, which had been introduced in 2020 to support public health during the COVID-19 pandemic.

Division 2 of part 3 would implement, among other things, excise duty rate adjustments for tobacco, vaping and alcohol products. Specifically, it would implement the budget 2024 proposal to increase the tobacco excise duty rate by $4 per carton of 200 cigarettes, effective April 17, 2024. It would also implement the budget 2024 proposal to increase vaping product excise duty rates by 12%.

Finally, as announced on March 9, 2024, it would extend by two years the 2% cap on the inflation adjustment on beer, spirits and wine excise duties, and would also reduce by half, for two years, the excise duty rate for the first 15,000 hectolitres of beer brewed in Canada.

Division 3 of part 3 implements changes to the Underused Housing Tax, in response to suggestions from Canadians. The changes would facilitate compliance while ensuring that the tax continues to apply as intended. Among other things, the amendments would eliminate filing requirements for certain owners, reduce minimum penalties for failing to file a return and introduce a new exemption for residential properties held as a place of residence or lodging for employees.

Division 4 of part 3 implements a measure that would broaden the provisions allowing the disclosure of confidential information in respect of a provincial Crown or its agent that is non-compliant or has stated that it will not comply with the federal fuel charge under part 1 of the Greenhouse Gas Pollution Pricing Act.

Mr. Chair, this completes our opening remarks for parts 1, 2 and 3 of Bill C‑69.