ET/SL 3

February 22, 1994

On February 22, 1994, the Minister of Finance tabled a Notice of Ways and Means Motion to amend the Excise Tax Act. As a result, the following changes in the rates of air transportation tax are proposed:

• The tax with respect to charter flights within the taxation area where the air transportation is purchased in Canada will be the aggregate of 7% of the amount paid or payable and $3 in respect of each emplanement pursuant to the charter agreement, to a maximum of $25 per emplanement. (from 7% and $5 to a maximum of $20 per emplanement)
  
• The tax for travel within the taxation area imposed under section 10 of the Excise Tax Act will be the aggregate of 7% of the amount paid or payable and $6, to a maximum of $50. (from 7% and $10 to a maximum of $40)
  
• For air transportation that is subject to both the Canadian air transportation tax and the 10% United States air transportation tax, the rate of tax will be the aggregate of 5% of the amount paid or payable and $4, to a maximum of $25. (from 5% and $4 to a maximum of $19)
  
• For self-written tickets where the ticket is restricted by the ticketing system of the air carrier to only one segment of air travel and does not include intermediate stops or any return to the point of departure, the rate of tax will be 7% of the amount paid or payable and $3, to a maximum of $25. (from 7% and $5 to a maximum of $20)
  
• The specific tax for travel beginning in the taxation area and ending outside the taxation area will be increased to $50. (from $40)
  
• The specific tax for travel beginning and ending outside the taxation area which includes an emplanement at an airport in Canada and where the ticket is purchased outside Canada will be increased to $25. (from $19)

The changes to the rates of air transportation tax apply to tickets purchased in Canada on or after May 1, 1994. They also apply to tickets purchased outside Canada for transportation which includes any emplanement from an airport in Canada on or after May 1, except where the air transportation tax has been paid before that date.

If you require further information on these changes, please contact your local Excise/GST district office.