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Taxpayers Federation calls out the federal government for its unfair carbon tax


May 16, 2019

EDMONTON, AB: The Canadian Taxpayers Federation is calling out the federal government for forcing some provinces to pay a more punitive carbon tax. Under the federal government’s carbon tax, Newfoundland and Labrador, Nova Scotia, Prince Edward Island and Quebec all receive better deals than other Canadian provinces. The CTF is providing the provincial comparisons as part of its annual Gas Tax Honesty Day initiative, which shows drivers how much of their fuel bills are actually taxes.

“Albertans continue to get a raw deal on carbon taxes,” said Franco Terrazzano, CTF’s Alberta Director. “The NDP forced us to pay a carbon tax when most provinces didn’t have one and now Ottawa is letting other provinces pay a less punitive tax.”

The provincial carbon tax currently costs Alberta’s drivers 6.7 cents per litre for gasoline and Ottawa plans to raise the tax to 11.1 cents per litre under the federal tax.
 

 
However, the federal government is giving other provinces very different deals, such as:

Newfoundland and Labrador’s carbon tax is equivalent to 0.4 cents per litre on gasoline. Provincial taxes were cut by 4 cents per litre before implementation of a carbon tax of 4.4 cents per litre. Home heating is exempt.

Nova Scotia’s carbon tax is equivalent to 0.9 cents per litre on gasoline with no planned increases.

Prince Edward Island’s carbon tax is equivalent to 1 cent per litre on gasoline. Provincial fuel taxes were cut by 3.4 cents per litre before implementation of the carbon tax of 4.4 cents per litre this year and 6.6 cents per litre next. It is also unclear whether Prince Edward Island will increase its carbon tax after 2020.

Quebec’s cap-and-trade carbon tax is equivalent to 4.9 cents per litre on gasoline and an unspecified future price.
“It’s bad enough that Albertans have been forced to pay more to fuel their cars and heat their homes during cold winters, but now Ottawa is adding insult to injury by letting other provinces pay a lower carbon tax,” said Terrazzano.

You can find the Canadian Taxpayers Federation’s 2019 Gas Tax Honesty Day report here.

Contact:

Franco Terrazzano
Alberta Director
Canadian Taxpayers Federation
403-918-3532 (cell)

The CTF is Canada’s leading non-partisan citizens’ advocacy group fighting for lower taxes, less waste and accountable government. Founded in 1990, the CTF has more than 198,000 supporters and seven offices across Canada. The CTF is funded by free-will, non tax-receiptable contributions.



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