Second carbon tax costs average family up to $1,157 by 2030: Parliamentary Budget Officer

The Canadian Taxpayers Federation is calling on the federal government to scrap its impending second carbon tax following today’s Parliamentary Budget Officer report.

“Canadians are already struggling to afford gasoline and groceries and the last thing we need is another carbon tax that makes life more expensive,” said Franco Terrazzano, Federal Director of the CTF. “The PBO is clear: the second carbon tax will cost families hundreds and even thousands of dollars.”

The second carbon tax is embedded within federal clean fuel regulations set to take effect on July 1, 2023. The regulations will require producers to reduce the carbon content of their fuels. If they can’t meet those requirements, they’ll have to pay the second carbon tax. The second carbon tax is in addition to the current carbon tax. There are no rebates with the second carbon tax.

Today’s PBO report estimated the second carbon tax will cost the average household between $384 and $1,157 in 2030 depending on the province. The table at the end of this news release breaks down the cost for the average household by province.

The second carbon tax will increase the price of gasoline by up to 17 cents per litre in 2030.

The second carbon tax is “regressive for households” because “lower income households generally spend a larger share of their income on transportation and other energy-intensive goods and services compared to higher income households.”

The PBO also notes that, “Canada’s own emissions are not large enough to materially impact climate change.”