The B.C. government is cancelling the carbon tax by introducing legislation to drop the rate to $0, effective today.
Premier David Eby says the consumer carbon tax has become divisive at a time we need to be united.
“We will help people with costs and fight climate change by ensuring big polluters continue to pay, encouraging industry to innovate and giving British Columbians affordable options to make sustainable choices,” he said.
The reduction of the tax to $0 is an immediate step to align B.C.’s carbon tax rate with the new federal carbon tax rate.
Prime Minister Mark Carney announced hours after being sworn-in earlier this month that the feds would be reducing the federal consumer portion to $0.
That should save British Columbians 17 cents per litre of a tank of gas, and approximately 15 cents per cubic metre for natural gas on their home heating bill.
The climate action tax credit, developed to help offset the impacts of the consumer carbon tax on people and families, will also be cancelled.
The final payment will be distributed this month.
Finance Minister Brenda Bailey said the carbon tax has been an important tool in B.C. for over a decade and half, but it has become too politically divisive and a distraction from other issues.
The Province says cancelling the tax and the credit will have an estimated impact of $1.99 billion in the coming fiscal year.
It will continue to ensure big polluters pay through the B.C. output-based carbon pricing system, which supports decarbonization efforts, incentivizing industry to lower their emissions to avoid paying the tax.
To learn more, visit Government of British Columbia.
