Should B.C.’s revenue-neutral carbon tax be increased to pay for public transit, kept revenue neutral or be exempted for certain sectors?
The B.C. government is asking the public for feedback as part of a review of the carbon tax, although scrapping the tax doesn’t appear to be an option.
"We remain committed to addressing climate change and are proud that B.C.
is a North American leader,” Finance Minister Kevin Falcon said in a press release.
“However, four years in, the revenue-neutral carbon tax remains the only one of its kind in North America, and this is a good time to pause and examine how the carbon tax is affecting our economic competitiveness."
B.C. became the first jurisdiction in North America to introduce a carbon tax in 2008 as part of its climate action strategy. It went up from $25 per tonne on CO2 emissions last year to $30 per tonne this year. The tax is not scheduled to increase next year.
The carbon tax has been praised by energy economist Mark Jaccard as one of the most effective carbon reduction tools available to government. However, it has been criticized for the way it has been applied.
As reported by Business in Vancouver in February (See “Greenhouse growers bail out of B.C.” - Feb. 28), B.C. greenhouse innovators have been investing in new technology south of the border, but not in B.C., partly because of the carbon tax they have to pay on the natural gas they burn in their greenhouse operations.
Local greenhouse operators report they face carbon tax bills of $500,000 to $1 million. In April, the B.C. government announced $6 million in tax relief for greenhouse operators to help offset the tax. (See “$76m carbon tax relief supports B.C. greenhouses” – April 4.)
Whether greenhouse operators who grow food should get a permanent exemption from the carbon tax is one of the questions the government will consider in its review.
The tax applies to most fuels:
- gasoline and diesel, $0.06 per litre;
- jet fuel $0.07/litre;
- natural gas, $0.05/litre;
- propane, $0.04/litre.
For information on the review or to make a submission, click here. http://www.fin.gov.bc.ca/tbs/tp/climate/carbon_tax.htm
Written submissions will be accepted until August 31.
