The B.C. government is cancelling the carbon tax by introducing legislation to drop the rate to $0, as of tomorrow (Tuesday).
“British Columbians are doing everything they can to reduce their emissions. But people shouldn’t have to choose between climate action and being able to afford their bills,” said Premier David Eby.
“That’s why we are eliminating the consumer carbon tax, which has become divisive at a time we need to be united. We will help people with costs and fight climate change by ensuring big polluters continue to pay, encouraging industry to innovate and giving British Columbians affordable options to make sustainable choices.”
The reduction of the tax to $0 is an immediate step to align B.C.’s carbon tax rate with the new federal carbon tax rate.
The elimination of the carbon tax means people in British Columbia will no longer be required to pay the consumer carbon tax, taking approximately 17 cents per litre off the cost of fuel and approximately 15 cents per cubic metre for natural gas on their home heating bill.
The climate action tax credit, developed to help offset the impacts of the consumer carbon tax on people and families, will also be cancelled. The final payment will be distributed in April 2025.
“The carbon tax has been an important tool in B.C. for over a decade and half, but it has become too politically divisive and a distraction from the important issues we are tackling,” said Brenda Bailey, Minister of Finance. “While this is a significant shift for our province, we will offset the impact while focusing on growing the economy during these challenging economic times.”
Cancelling the tax and the credit will have an estimated impact of $1.99 billion in the coming fiscal year. The Province will restructure programs funded by carbon tax revenue to minimize the impact on B.C.’s budget, while supporting people in British Columbia in achieving climate goals.
The Province will continue to ensure big polluters pay through the B.C. output-based carbon pricing system. The system supports decarbonization efforts, incentivizing industry to lower their emissions to avoid paying the tax.
“We remain committed to driving down emissions while making life more affordable,” said Adrian Dix, Minister of Energy and Climate Solutions.
“We are continuing to invest in practical solutions, such as home heat pump rebates for those who need them most and energy-efficiency upgrades, so people can lower their energy costs and reduce emissions without bearing an extra financial burden.”
Be the first to know! Don’t miss out on breaking news and daily updates in your area. Sign up to MyKootenayNow News Alerts.
