The federal tax is $20 a tonne for this year and will increase by $10 annually until it hits $50 a tonne in April 2022. The starting rate adds 4.4 cents to the price of a litre of gas
People in Manitoba, Ontario, Saskatchewan and New Brunswick will be paying more for gasoline and heating fuel Monday when the federal government’s carbon tax begins in provinces that refused to impose their own emissions pricing.
There is uncertainty about how widespread the impact will be, how businesses will receive rebates, and whether the tax will survive court challenges underway in two of the rebel provinces. “There’s no way for us to pass these costs along. If you’re a grocery store or a dry cleaner, if you’re costs go up, you can pass them along to the consumers, but we participate in a world market.”
The federal government says the carbon tax is a sensible way to protect the environment — put a price on activities that pollute to discourage emissions, and give back most or all of the money through income taxes.Ontario Premier Doug Ford has described the carbon levy as a “job-killing” tax that will increase prices on everything. He has warned that it could cause a recession — a claim economists dispute.
New Brunswick Premier Blaine Higgs’s government argues the tax will punish the province’s large rural population because there’s no option to ditch vehicles for public transit.
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