MPs question HST tax on Legion's purchase of poppies

Sault Ste. Marie MP Tony Martin
News Release

********************

OTTAWA – As Canada’s newest Governor General, David Johnston (pictured) received the ceremonial first poppy yesterday at Rideau Hall, New Democratic MP Malcolm Allen (Welland) wants to remind the government, and Canadians, how the HST will affect the poppy campaign, which is used as a crucial fundraising tool for the Royal Canadian Legion.

Since the HST was put into effect this summer, poppies and wreaths purchased by the Dominion Command from their supplier in Toronto, are now subject to the full 13 percent tax.

This increase comes at an unfortunate time, as Legions need those funds more than ever to support our military, police and RCMP veterans, and their families.

"By charging 13 percent HST on the purchase of poppies, the federal government is inadvertently hurting veterans and their families,” said Allen. “This tax robs Legions of an extra 13 percent of their costs in purchasing the bulk poppies, which will come out of the millions of dollars donated by Canadians when they buy poppies every year for Remembrance Day.”

Allen’s Private Members Bill, C-480, An Act to amend the Excise Tax Act, would remove the GST from poppies and wreaths purchased for the benefit of veterans and would allow the Legions to recoup the five percent federal portion of the HST.

Distribution of the national campaign is set to roll out on October 29 in advance of Remembrance Day on November 11.

Approximately 18 million poppies are distributed each year in remembrance of Canada's military service around the world.

********************