What are the three levels of government responsible for taxation in Canada?

The three levels of government responsible for taxation in Canada are federal, provincial, and municipal. This structure reflects Canada's constitutional framework, which divides powers and responsibilities among different tiers of government.

The federal government imposes taxes such as income tax, goods and services tax (GST), and excise taxes, which are crucial for funding programs and services at the national level, including healthcare and defense. The provincial governments have the authority to levy taxes like provincial income tax and sales tax, which help fund services such as education and transportation within their jurisdictions. Finally, municipal governments impose property taxes and local fees to support community services including waste management, public safety, and local infrastructure.

Each level of government plays a distinct role and collects taxes pertinent to its area of jurisdiction, ensuring that public services are financed effectively across the nation. Understanding this multi-tiered taxation system is essential for anyone studying Canadian public policy or finance, including those pursuing careers in insurance and financial services.