Canadians in four provinces should expect to see a spike in pump prices Monday – the most visible sign of the federal government’s carbon tax that is meant to spur reductions in greenhouse gas emissions but at the same time has sparked a political storm.
As of April 1, the Liberal government’s climate-change levy takes effect in Saskatchewan, Manitoba, Ontario and New Brunswick, four jurisdictions that do not have provincial carbon pricing plans.
The tax kicks in at $20 for each tonne of carbon-dioxide emissions associated with the fuel, rising to $50 a tonne by 2022. That’s expected to immediately add 4.5 cents on a litre of gasoline and 5.5 cents on diesel, rising by 2022 to 11.6 cents and 13.7 cents, respectively.
Ottawa has pledged to return every dollar back to the province from which it was collected. Some 90 per cent of the revenue will be channelled to households though a payment called the Climate Action Incentive, which will be delivered annually through individuals’ income tax returns – either adding to a refund or reducing an amount owing.
In Ontario, a family of four will receive $307, while a similar family in Saskatchewan will get $609 because of that province’s greater reliance on fossil fuels.
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