GST/HST Rebate for Municipalities

As previously announced in the Throne Speech and a March 9, 2004 press release, the GST rebate for municipalities of all sizes will be increased from the current 57.14% to 100%. This expanded rebate, which also includes the federal portion of the HST, applies to acquisitions made by municipalities after January 31, 2004.

Gasoline Tax Revenues

As stated in the Throne Speech, the Budget indicates that it is the government's intention to share a portion of gas tax revenues with municipalities. Although details are not included in the Budget, the government has committed to hold discussions with the provinces and municipalities over the coming months.

Air Travellers Security Charge

The Air Travellers Security Charge was introduced on April 1, 2002 to fund enhanced air travel security systems. As part of the government's review to ensure revenues remain in line with planned expenditures, the following adjustments will take effect for air travel purchases made after March 31, 2004:

• for one-way air travel within Canada the charge will be reduced from $7 to $6
• for round-trip air travel within Canada the charge will be reduced from $14 to $12
• for trans-border air travel the charge will be reduced form $12 to $10
• for other international air travel the charge will be reduced from $24 to $20