It is the final day of the consumer carbon tax in B.C.
Premier David Eby announced earlier this month that B.C. would follow the federal government’s lead after Prime Minister Mark Carney ended the federal requirement a week before calling an election on March 23.
Legislation was introduced in Victoria on Monday and Eby said it is expected to pass by the end of the day.
“The carbon tax played an important role here in British Columbia for many years, assisting us in reducing our emissions while our economy continued to grow,” Eby said.
“It was supported by parties from many different backgrounds in the province. However, the tax, has become divisive.”
Eby said drivers should see a savings of 17 cents at the pump.
Drivers have seen little relief, however, with prices climbing to 196.9 cents per litre at some stations in the Lower Mainland over the weekend.
“Like many British Columbians, I’ve been watching the price of gas go up in the ten days since we made this announcement,” Eby said.
“We have transparency legislation in place with the Utilities Commission to ensure that they have the authority to shine a light on any gouging that takes place of British Columbians. So, just more heads up to the oil and gas companies, now is not the moment. British Columbians need to see that tax reduction show up at the pump when they fill up.
“Now is not a time to be playing games with essentials for British Columbians or Canadians as a whole.”
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One analyst recommends waiting until Tuesday to fill up.
“That will see a net drop of 18.5 cents per litre, which would put gas prices in Metro Vancouver at the highest level at 1.79. By the evening, you could see stations selling for 1.71,” said Dan McTeague, a former MP who is now executive director of the advocacy group Canadians for Affordable Energy.
“Stations that don’t do that, don’t visit them because the carbon tax is on your receipt. There’s no reason for gas stations to collect it, because they don’t have to remit it.”
Although the consumer carbon tax will no longer apply, Eby has previously stated the province remains committed to its carbon-pricing system for big industrial emitters.
The tax has been in place since 2008 and getting rid of it leaves a $1.5-billion hole in the provincial budget.
Eby said the government will be restructuring “significant parts” of the CleanBC Program in order to respond.
“This is a program that assisted businesses and individuals to reduce their own carbon footprints and often, save money in the process as well,” he said.
“Switching from natural gas to heat pumps, for example. And so we’re going to have to make some of those changes. There are other pieces of the carbon tax that offset cuts to the corporate tax rate, as well as the individual tax rate. We are not going to be increasing those taxes to make up the difference. What we are doing is a review of all government programs to ensure that we’re delivering programs as efficiently as possible.
“Getting back to balance on the budget. People will not be receiving the climate action tax credit going forward. This is significant for many British Columbians. And that payment will not be happening anymore as a result of the elimination of the carbon tax.”
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