Carbon tax at the pumps starts in April
Manitoba decided last year it would not impose its own carbon tax on fuel. As a result, the federal government’s “backstop” program – which includes a carbon tax — applies in this province (and three others, similarly).
What will it cost?
The carbon tax will add:
| Diesel | 6.3 cents per litre |
| Gasoline | 4.4 cents per litre |
| Natural Gas | 3.9 cents per cubic metre |
| Propane | 3.1 cents per litre |
What is the federal government doing with the revenues from Manitoba?
Manitobans will get annual rebates, which they file for at tax time this year. Those rebates will be higher than the cost of the tax on individuals, Ottawa estimates. The rebates this year:
| Single/1st adult | $170 |
| 2nd adult in house | $85 |
| Per child | $42 |
(Ottawa estimates the average payment to Manitoba families will be $336, but the average cost to families will be $232. Cheques will be sent with tax assessments.)
Will business or industry get help?
Business or industry in Manitoba will not get rebates. Farmers, however, will not pay carbon tax on fuel used for tractors, trucks and other farm machinery used on the farm.
What is Manitoba doing?
In absence of a carbon tax (and its revenues), the provincial government intends to set up ‘carbon savings accounts’ that track efforts to cut greenhouse gas emissions. It has set goals in five-year periods and any shortfall gets added to the next five-year account.
The province has set up sector working groups to identify programs or initiatives to spur GHG emission cuts. The MHCA, part of the transportation sector working group, has suggested a variety of measures – including tax incentives — to assist industry in the adoption of new technologies to reduce emissions or fuel use. The MHCA has asked senior Manitoba MP Jim Carr for a meeting for a similar conversation on potential federal measures.
