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A woman pumps gas in Toronto on Tuesday, May 10, 2011. Residents of Manitoba, Ontario, Saskatchewan and New Brunswick will pay more for gasoline and fuel oil when the federal government's carbon tax will be introduced in provinces that have refused to impose their own emissions. pricing.
Nathan Denette / THE CANADIAN PRESS
The federal tax rises to $ 20 a ton this year and will increase by $ 10 a year until it reaches $ 50 a ton in April 2022. The start-up rate adds 4.4 cents to the price of $ 25 a ton. one liter of gasoline.
Residents of Manitoba, Ontario, Saskatchewan and New Brunswick will pay more for gasoline and fuel oil on Monday when the federal government's carbon tax begins in provinces that have refused to tax their taxes. own issue prices.
The federal tax rises to $ 20 a ton this year and is expected to rise $ 10 a year until it reaches $ 50 a ton in April 2022.
The departure rate adds 4.4 cents to the price of a liter of gasoline, about four hundred to one cubic meter of natural gas, and also increases the costs of propane, butane and fuel. ;aviation.
There is uncertainty as to the extent of the impact, the means available to businesses, and whether the tax will survive court challenges in two of the rebel provinces.
Todd Lewis, President of the Agricultural Producers Association of Saskatchewan, said that if farm fuel was exempt from the carbon tax, the levy applied to the fuel used for commercial trucks and trains, the transportation of grain into Canada. outside the farm, the supply of seeds and equipment.
"As we ship our products, our costs will increase. As simple as that, "said Lewis in an interview.
"It is not possible for us to bear these costs. If you are a grocery store or a dry cleaner, if your costs go up, you can pbad them on to consumers, but we participate in the global market. "
The business world also has unanswered questions. The federal government has yet to reveal details of a program to reimburse some of the additional costs to small and medium-sized businesses.
Residents of the four provinces will also receive rebates on their tax returns. Discounts start at $ 128 a year, vary from province to province and increase for those with a spouse or dependents at home.
The federal government says the carbon tax is a good way to protect the environment: a price must be put on polluting activities to discourage emissions and return most or all of the money through the income tax.
Conservative premiers have expressed criticism.
Ontario Premier Doug Ford described the carbon tax as an "employment-damaging" tax that would raise prices for everything. He warned that this could cause a recession, a claim challenged by economists.
Ford tweeted almost daily about the tax in the past two weeks – his caucus members have donated dozens of others – and held press conferences to talk about it.
An Ontario court is about to hear the constitutional challenge to the carbon tax tabled by the government in April. A court in Saskatchewan has already heard similar arguments and is expected to issue a verdict soon.
The government of New Brunswick Premier Blaine Higgs says the tax will punish the province's large rural population because it is not possible to drop vehicles for public transit.
In Manitoba, Progressive Conservative Prime Minister Brian Pallister initially set out to implement a lower carbon tax and asked that the province be recognized for spending billions of dollars on building new carbon taxes. clean hydroelectric infrastructure. He abandoned the idea and joined the protesting provinces when Ottawa refused to accept the lower rate.
Pallister said the tax came at a time of economic uncertainty for Manitobans.
"Uncertainty for people who are worried about the trade … or for those who fear higher interest rates for mortgages when they come to a renewal."
Pallister suggests that federal rebates may not be enough to offset the rising costs businesses will face, which could be pbaded on to consumers.
"The proposed plan does not take into account … the multiplier effects of these taxes on the people to whom we buy products."
Beverly Gilbert, a Calgary tax advisor, says the carbon tax will affect Canada's competitiveness.
"The United States has no kind of carbon tax or carbon tax, which makes international competition more difficult," she said.
Files of Stephanie Taylor in Regina, Allison Jones in Toronto, Holly McKenzie-Sutter in St. John's, Newfoundland, and Dan Healing in Calgary
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