It seems that everyone has been talking about the new carbon tax recently. Back in April, Prime Minister Justin Trudeau launched this new policy as part of the federal government's commitment to protecting the nation from climate change. Yet, a new report has shown that the carbon tax isn't equal across Canada and some provinces are actually getting hit harder than others.
This new carbon tax that was put in place at the beginning of April has led to increasing costs in gas, heating, natural gas, and propane. The Liberal government states that these new carbon taxes which will be charging residents for the number of carbon emissions that they use will significantly help to reduce emissions by 2022.
While the carbon tax is driving up some costs, it is also important to note that the government does provide rebates to residents throughout the nation that are paying the carbon tax. In Ontario, around $300 is expected to be credited back to households by the governments annually in results of this new tax.
Yet, according to the National Post, a new report from the Canadian Taxpayers Federation shows that the carbon tax is being applied unequally around the country. While some provinces are paying as much as 4.4 cents per litre extra because of the carbon tax, other provinces are only paying half a cent more per litre of gas.
The two provinces that are currently getting hit the hardest by the new carbon tax are Alberta and British Columbia. While BC is paying close to nine cents extra per litre, Alberta is following close behind with 6.7 cents extra per litre. However, both of these provinces have their own carbon tax at the provincial one and therefore are unaffected by the federal tax.
Speaking of the federal carbon tax, back in April, it hit Ontario, Manitoba, Saskatchewan, and New Brunswick pretty hard. These four provinces saw an increase of 4.4 cents added to each litre of gas. However, National Post states that this tax was applied to these four provinces because they were unable to develop their own carbon tax and the federal government was forced to step in.
These provinces are being hit hard by this new carbon tax, but it's only expected to get much worse in the next coming years. By 2022 Ontario, Manitoba, Saskatchewan and New Brunswick can expect to see their gas prices rise an extra 11 cents per litre because of this carbon tax.
However, there are a few Canadian provinces that are being hit way less than those above. With their own carbon tax plans, Prince Edward Island, Nova Scotia and Newfoundland are only paying as much as an additional cent more per litre. Next year these carbon taxes are expected to rise to only 2.2 cents extra per litre. However, these low prices are due to Newfoundland and P.E.I offsetting their carbon taxes by cutting existing provincial gas taxes and New Brunswick's cap-and-trade system.
The main reason that these carbon taxes seem to differ so greatly between provinces is that every province has the right to develop their own carbon tax. Yet, under the federal plan, every province must ensure that they have a carbon tax of at least $20 per tonne of greenhouse gas emissions in 2019.