Budget watchdog says carbon rebate will be more than carbon tax for most Canadians

Fuel surcharge was implemented this month in provinces that have not enacted carbon-pricing systems

A woman fills up her with gas in Toronto, on Monday April 1, 2019. Canada’s budget watchdog says revenues from the federal carbon price will be more than $2.6 billion this year and exceed $6 billion within five years. (THE CANADIAN PRESS/Christopher Katsarov)

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 that have not enacted carbon-pricing systems of their own.

READ MORE: B.C. carbon tax up April 1, other provinces begin to catch up

The new analysis by the parliamentary budget office predicts that this year, the fuel charge will bring in more than $2.4 billion. Another $200 million will be raised from the tax applied to emissions from large industrial emitters, who pay it on a portion of their emissions above a level set by the government­.

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. The four provinces involved are Saskatchewan, Manitoba, Ontario and New Brunswick.

The figures are very close to the government’s own projections for revenues. The Department of Finance predicted the fuel charge will bring in $2.36 billion in 2019-20 and $5.7 billion in 2022-23.

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.

The rebates are the same regardless of income, but wealthier Canadians tend to own bigger homes, drive more and bigger cars, and consume more products, all of which contribute to a higher carbon tax total.

In Saskatchewan for instance, the average household is expected to pay $425 in carbon tax this year, and will get $598 back from the rebate. In Ontario, the average cost will be $256, and the average rebate $300. In Manitoba, the average cost will be $260 and the average rebate $336, and in New Brunswick the average cost will be $193 and the average rebate $248.

The wealthiest families in Saskatchewan, Ontario and New Brunswick will pay between $13 and $50 more in carbon tax than they receive from the rebate. In Manitoba, the wealthiest families will still be better off by $37, the PBO says.

The lowest-income families will get $70 more than they pay in Saskatchewan, $101 in Manitoba, $89 in Ontario and $63 in New Brunswick.

The benefits also grow almost every year, across every income group. By 2023-24, the PBO predicts the lowest-income households in Saskatchewan will get $131 more in rebates than they pay in carbon tax. In Manitoba, that group will be $214 better off; in Ontario, $195; and New Brunswick, $143.

The carbon tax is intended to encourage Canadians to find ways to reduce their carbon footprints, and therefore pay less carbon tax, without causing them economic hardship.

Environment Minister Catherine McKenna said Thursday the report confirms what the government has been saying about the rebates.

“A price on pollution works, it protects the environment for our kids and grandkids, and puts money back into the pockets of Canadians,” she said.

The carbon tax has become one of the hottest-button political disputes of 2019, with the Conservatives angling hard against it as an effective environmental measure and three of the four provinces with the federal tax now challenging it in court.

Mia Rabson, The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

VIDEO: Birth siblings connect 73 years later

Donna Smith of Abbotsford and Clayton Myers of Williams Lake are glad they met each other

Explore colour with the Cariboo Art Society through Abstracted Colour at Station House

This month in the Station House get to know the artists of the Cariboo Art Society

Students, staff safe after brief lockdown at Nesika Elementary School

Parent custody issue prompts response, normal activity resumed at school

New housing on First Avenue scheduled for occupancy Dec. 1

Of the 38 units, only eight will be subsidized, the other 31 will be market rentals

VIDEO: Trans Mountain expansion project gets green light, again

Prime Minister Justin Trudeau announced the decision in Ottawa on Tuesday afternoon

MPs hear retired B.C. nurse’s petition to change compensation for fatal medical errors

Teri McGrath wants provinces to implement no-fault system for medical errors

Horgan says he’ll still defend B.C. coast after second Trans Mountain approval

Meanwhile, one B.C. First Nation has announced plans for a legal challenge

Demonstrators on either side of Trans Mountain debate clash in Vancouver

Crowd heard from member of Indigenous-led coalition that hopes to buy 51% of expansion project

Grieving B.C. mom hopes Facebook message leads to new investigation into son’s Surrey homicide

Criminal Justice Branch didn’t lay charges, concluding no substantial likelihood of murder or manslaughter conviction

B.C.’s measles vaccination program gains traction in May

More than 15,000 doses of the MMR vaccine has been administered across the province

B.C. farmers concerned Agricultural Land Reserve changes choking their livelihood

Dozens voice concerns at special meeting hosted on Vancouver Island

UPDATE: Two-year-old involved in Chilliwack pool drowning has died

Toddler was reported to not be breathing as air ambulance called out Thursday afternoon

B.C. high school withdraws notices for temporary dress code

Parents previously told the Interior News they felt there was inadequate consultation over the rules

Most Read