Excise Taxes and Special Levies Notices

ET/SL-0059

May 2, 2006

Notice to all Air Carriers: Rate Reductions for the Air Travellers Security Charge

Travellers pay the Air Travellers Security Charge (ATSC) on the acquisition of air transportation services for travel within Canada and from Canada to foreign destinations.

Existing ATSC Rates

For domestic air travel acquired in Canada, where the GST/HST applies at the rate of 7% or 15% for the air transportation service, the ATSC is $4.67 for each chargeable emplanement, to a maximum of $9.35. Where the GST/HST does not apply, the ATSC is $5.00 for each chargeable emplanement, to a maximum of $10.00.

For air travel to a destination outside Canada that is within the continental zone (Canada, United States [except Hawaii] and the Islands of St. Pierre and Miquelon) and where the GST/HST applies at the rate of 7% or 15%, the ATSC is $7.94 for each chargeable emplanement, to a maximum of $15.89. Where the GST/HST does not apply, the ATSC is $8.50 for each chargeable emplanement, to a maximum of $17.00.

For air travel to a destination outside the continental zone, the ATSC is $17 where there is a chargeable emplanement. This applies to air transportation that is acquired in or outside Canada.

New ATSC Rates

As announced by the Minister of Finance in the May 2, 2006 Budget, the ATSC rates will be reduced or remain the same, as follows:

• For domestic air travel acquired in Canada, where the GST/HST applies at the rate of 6% or 14% for the air transportation service, the ATSC will be $4.67 for each chargeable emplanement, to a maximum of $9.34. Where the GST/HST does not apply, the ATSC will be $4.95 for each chargeable emplanement, to a maximum of $9.90.
• For air travel to a destination outside Canada but within the continental zone, where the GST/HST applies at the rate of 6% or 14%, the ATSC will be $7.94 for each chargeable emplanement, to a maximum of $15.89. Where the GST/HST does not apply, the ATSC will be $8.42 for each chargeable emplanement, to a maximum of $16.84.
• For air travel to a destination outside the continental zone, the ATSC will remain at $17 where there is a chargeable emplanement. This applies to air transportation that is acquired in or outside Canada.

Application

These ATSC rates will apply to any air transportation service purchased on or after July 1, 2006, that includes a chargeable emplanement on or after July 1, 2006. For specific details regarding these rate reductions, please refer to the Notice of Ways and Means Motion tabled by the Minister of Finance, which can be found at http://www.fin.gc.ca/budget06/bp/Excise%20Tax%20Act.

Who can I contact?

Should you have any questions about these changes or any other ATSC matter, feel free to call one of the following CRA offices:

Excise and Other Levies Unit at the Summerside Tax Centre

Individuals in Canada and the United States may call this unit toll free at 1-877-432-5472. Individuals outside these countries may dial (902) 432-5472. Service is available in both English and French

Montreal Tax Services Office
1-888-609-0073

Mississauga Tax Services Office
1-866-667-9851

Burnaby-Fraser Tax Services Office
(604) 587-2611