Carbon rebate will be more than carbon tax
(CP) Canada’s budget watchdog agrees with the federal government’s claim that Canadians are going to get more from the climate change tax rebate than they are paying in carbon tax.
The federal government implemented a fuel surcharge this month of $20 per tonne of emissions in the four provinces (Saskatchewan, Manitoba, Ontario, New Brunswick) that have not enacted carbonpricing systems of their own. In 2022-23, when the price hits $50 a tonne, the revenues will climb to $5.8 billion from the fuel charge and $448 million from large emitters. Ottawa has committed – and has now written into law – that 90 per cent of the revenues collected from the fuel charge will be returned to individual households in the provinces where the revenues were raised. The PBO report says over the next five years all but the wealthiest 20 per cent of Canadian households will get more back from the rebate than they will pay in carbon tax.
In Sask. , the average household is expected to pay $425 in carbon tax this year, and will get $598 back from the rebate. The wealthiest in Sask. will pay between $13 and $50 more in carbon tax than they receive from the rebate. The lowest-income families will get $70 more than they pay in Saskatchewan.