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Prime Minister Stephen Harper said he did not much like a new border tax proposed by the United States, calling it a cash grab designed to a budget crisis.
The U.S. government wants to slap a $ 5.50 inspection fee to Canadians in the country to travel by air or sea. Canadians crossing the U.S. land would not have to pay the fee.
"I think it is clear that the U.S. government is casting around for ways to generate revenue," Harper said Thursday. "I think this is not a convenient way to do that."
"We want to ensure that trade and travel between our countries is easier, not harder, and we do not need additional taxes on that kind of economic activity," he added.
In the House of Commons, Foreign Affairs Minister Lawrence Cannon said the passenger fee was "just a draft idea."
Cannon noted that the measure was the 2012 U.S. budget recently revealed and that the 2011 budget is not over Congress.
Currently, visitors from Canada, Mexico and some Caribbean countries are exempt of "passenger inspection fees." It is an exemption of the countries have enjoyed since 1997.
The budget includes a new U.S. proposal to lift that exemption - a move that a proof of the U.S. Department of Homeland Security estimates would bring in an additional 110 million U.S. dollars annually.
Income from fees would be used for U.S. Customs and Border Protection inspection functions support, says the document.
The U.S. government wants to slap a $ 5.50 inspection fee to Canadians in the country to travel by air or sea. Canadians crossing the U.S. land would not have to pay the fee.
"I think it is clear that the U.S. government is casting around for ways to generate revenue," Harper said Thursday. "I think this is not a convenient way to do that."
"We want to ensure that trade and travel between our countries is easier, not harder, and we do not need additional taxes on that kind of economic activity," he added.
In the House of Commons, Foreign Affairs Minister Lawrence Cannon said the passenger fee was "just a draft idea."
Cannon noted that the measure was the 2012 U.S. budget recently revealed and that the 2011 budget is not over Congress.
Currently, visitors from Canada, Mexico and some Caribbean countries are exempt of "passenger inspection fees." It is an exemption of the countries have enjoyed since 1997.
The budget includes a new U.S. proposal to lift that exemption - a move that a proof of the U.S. Department of Homeland Security estimates would bring in an additional 110 million U.S. dollars annually.
Income from fees would be used for U.S. Customs and Border Protection inspection functions support, says the document.
Canada and the U.S. are currently in talks to set up a North American security perimeter. The proposed fee is a sticking point in negotiations should be. Aviation groups against
Several aviation industry groups also came out against the proposed fee.
"An extra tax on air passengers, the ability of Canadian carriers to compete with low-cost operations in the border airports fall ...," said Board of Canada National Airlines President George Petsikas.
"Indeed, the announcement of an additional cost advantage for the border region facilities should make clear the need for commercial aviation in Canada to reduce cost structure," Petsikas said in a statement.
A group of Canadian airports echoed those comments.
"We share the concern of our tourism partners who would drive an extra fee on Canadian travelers to take to their cars and to fly out of U.S. border airports," said Canadian Airports Council President Bill Restall.
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