Liberals Need to Listen to Industry and Rethink Changes on Designated Materials Regulation

WHITEHORSE – The Yukon Liberals have been heavily criticized for their lack of consultation during their 13 months in office on regulations that will increase taxes on tires and electronics.

“The local business community has been clear the Liberals have not properly consulted on these changes that will hurt the local economy,” said Scott Kent, Official Opposition Critic for Community Services. “When the regulations initially came forward in 2016, the previous government heard the same concerns from the business community and agreed to abandon plans to implement the regulations and to work with industry to improve them.”

“Over the past 13 months in power, it has become clear that the current government has done nothing to address the concerns raised by industry in 2016,” added Kent. “Further, despite industry asking for at least a month, the government has been unable to provide answers to basic questions about their proposed fees.”

Background:

  • The Designated Materials Regulations originally proposed by the previous government in May, 2016 caused concern amongst the territory’s business community: http://www.gov.yk.ca/news/16-189.html
  • The previous government listened to industry’s concerns and in July 2016 agreed that the regulations were flawed and withdrew plans to implement them until further consultations were conducted to address concerns: http://www.gov.yk.ca/news/16-257.html
  • On May 16, 2017, the Liberals announced that they would implement the Designated Materials Regulations on February 1, 2018: http://www.gov.yk.ca/news/17-103.html
  • After being pressed by the Official Opposition in Question Period, the government agreed to delay implementation and extend consultations to February 1, 2018.
  • The regulations propose new point-of-purchase fees and tax increases on tires and electronics. While tires are currently taxed at $5 per tire, the new regulations will increase this up to $50 per tire at purchase. This amounts to a 900% increase.
  • Industry has suggested adopting a fee schedule more aligned with British Columbia or Alberta.

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Contact:
Madison Pearson
Communications
(867) 393-7026


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