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OTTAWA – Prime Minister Justin Trudeau unveiled on Tuesday how the federal government will hand over carbon tax money to Canadians in the provinces who have rejected Ottawa's call for a climate plan that puts a price on pollution.
The majority of Canadians who adhere to the federal government's carbon pricing plan will receive more after-tax money than they will pay, Trudeau promised. The new Climate Action Incentive payments will reimburse Canadians in Ontario, New Brunswick, Saskatchewan and Manitoba for new taxes on gasoline, electricity and heat.
The four provinces are or will likely soon be led by prime ministers who oppose the carbon tax and are committed to fighting their imposition by the federal government. In these provinces, the federal "support" carbon tax – starting at $ 20 per tonne in 2019 and up to $ 50 per excess ton by 2022 – is applied. In addition, the federal cap-and-trade plan for large emitters will be taxed in these provinces.
The money for Canadians in the four affected provinces will be paid into federal tax returns. It will be added to the money you get back at the end of the year, or deducted from what you owe the Canada Revenue Agency.
The rebate for Canadians in small, rural and remote communities is also increased by 10%.
The amount varies from province to province depending on the types of energy sources in each. The amount is based on the number of people per household and will increase each year as the tax increases.
Here's how these dollars will be distributed.
Ontario:
In Ontario, the carbon tax rebate for an average family of four in Ontario will be $ 307 in 2019, increasing every year. By 2022, the rebate for the average Ontario family of four will be $ 718.
In 2019, every single adult or first adult of a couple will receive $ 154; the second adult will receive $ 77, as well as single parents for their first child; and for every child in a family, the discount will be $ 38.
Come 2022, every single adult or first adult of a couple will receive $ 360; the second adult will receive $ 180, as well as single parents for their first child; and for every child in a family, the discount will be $ 89.
New Brunswick:
The carbon tax rebate for a family of four in New Brunswick will be $ 256 in 2019 and increase to $ 607 in 2022.
In 2019, every single adult or first adult of a couple will receive $ 128; the second adult will receive $ 64, as will single parents for their first child; and for every child in a family, the discount will be $ 32.
As of 2022, every single adult or first adult in a couple will receive $ 303, the second adult will receive $ 152 as well as single parents for their first child; and for every child in a family, the discount will be $ 76.
Saskatchewan:
In Saskatchewan, the carbon tax rebate for a family of four will be $ 609 in 2019, reaching $ 1,495 in 2022.
In 2019, every single adult or first adult of a couple will receive $ 305; the second adult will receive $ 152, as will single parents for their first child; and for every child in a family, the discount will be $ 76.
As of 2022, each single adult or first adult in a couple will receive $ 731, the second adult will receive $ 364, as well as single parents for their first child; and for every child in a family, the discount will be $ 182.
Manitoba:
In Manitoba, the carbon tax rebate for a family of four will be $ 339 in 2019 and will increase to $ 801 in 2022.
In 2019, every single adult or first adult of a couple will receive $ 170; the second adult will receive $ 85, as will single parents for their first child; and for every child in a family, the discount will be $ 42.
Come 2022, every single adult or first adult of a couple will receive $ 402, the second adult $ 201, as well as single parents for their first child; and for every child in a family, the discount will be $ 99.
Choice of provinces:
British Columbia, Alberta, Quebec, Nova Scotia, Newfoundland and Labrador, and the Northwest Territories all have their own systems for setting the price of pollution in accordance with federal.
Nunavut and Yukon have chosen to adopt both the federal carbon price and the plans for large emitters, while Prince Edward Island has its own carbon reduction plan but will adopt the federal approach to taxing large emitters.
Whether it is to have their own plan or to adopt the federal government, these nine governments decide for themselves how the revenues from their plans will be spent and will not be part of this repayment system.
Plan Policy
In the first year, Canadians in the four provinces subject to federal tax will receive their first full refund after completing their 2018 tax return. This means that some will receive a large check during a tax holiday. election year, even if they will only start contributing to the new tax a few months ago.
Trudeau denied that the plan is an effort to buy votes on what turned out to be a controversial policy, even though the money will go directly to voters in provinces where conservative leaders oppose politics.
Trudeau said Canadians wanted to be part of the solution and reduce carbon emissions, but they wanted help for this "transition" period of climate change.
The announcement was made with Minister of Environment and Climate Change Catherine McKenna, Finance Minister Bill Morneau and Minister of Science and Sport Kirsty Duncan at Humber College of Etobicoke, which is part of the riding of Ontario Premier Doug Ford.
Trudeau sent ministers Jim Carr, Ralph Goodale and Ginette Petitpas Taylor to their home provinces of Manitoba, Saskatchewan and New Brunswick to make similar announcements.
The carbon tax is expected to become a major issue in the federal campaign in 2019, with Conservative leader Andrew Scheer promising to scrap the tax when he was elected.
On Tuesday, he called the new rebate plan an "electoral gimmick".
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