Carbon tax rises to 3.6 cents
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Updated: July 04, 2009 9:33 AM
VICTORIA – B.C.’s carbon tax on fuels went up by 50 per cent on Canada Day, the first of four annual increases since it came into effect a year ago.
On gasoline, the tax started at 2.4 cents a litre and effective Wednesday it went up another 3.6 cents, on top of the federal and provincial gasoline taxes already in place. Similar increases apply to diesel, natural gas and other fossil fuels, each July 1 until 2012 when they will represent a tax of $30 per tonne of greenhouse gas emissions.
The increase was greeted with a hot blast from the Canadian Taxpayers’ Federation, which repeated its call for the carbon tax to be eliminated.
Maureen Bader, B.C. director for the foundation, said the provincial government’s goal is “to force people out of their cars, sit around in the dark, and wear sweaters in their homes to stop what some people believe is a looming global warming Armageddon.”
Richmond MLA John Yap, B.C.’s new minister of state for climate action, referred questions about the carbon tax to the finance ministry. He said he is aware of the ongoing scientific debate about climate indicators, but evidence such as the unchecked spread of pine beetle show that inaction has its own risks.
“There is a cost to leadership,” Yap said. “That’s the reality, but in the long run, we believe it is the right thing to do for our environment to deal with global warming, and it’s the right thing to do as well for our economy.”
Yap’s new role includes helping the B.C. government make itself “carbon neutral” by next year.
The finance ministry details personal and corporate income tax cuts that increase with each step upward for the carbon tax, with calculations that show most individuals come out ahead.
There is also an increase in the low-income tax credit to offset higher fuel costs. Effective July 1, an adult making less than $30,600 is eligible to receive $105.
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