No carbon tax relief at the gas pumps

B.C.’s carbon tax jumping to $35 per ton in April

An increase in B.C’s carbon tax to about 8.5 cents a litre will hit Okanagan drivers at the gas pumps in 2018.

The impact on gas prices is the result B.C.’s carbon tax jumping to $35 per ton in April, making it the highest carbon tax in Canada.

That will translate to about an extra $5 every time you fill up your car and about $10 tacked on if you drive an SUV, according to the Canadian Taxpayers Federation.

The carbon tax is also applied to natural gas and home heating oil.

Kris Sims, BC director for CTF, said starting in 2018 the B.C. carbon tax will no longer be labelled as “revenue neutral” and the money will pour into government coffers without earmarks or tracking as to where it’s spent.

Related: Gas price spike in fall 2017

Sims said with more than 5.7 billion litres of gasoline sold in B.C. last year, that means the provincial government will rake in an average of $490 million in gasoline carbon tax, and when the diesel carbon tax is included, that jumps to more than $600 million in tax revenue taken from motorists in one year.

“The carbon tax is going to cost us even more and now we have no idea where it’s going,” said Sims.

“If you have two vehicles in your family this means the carbon tax now costs you about $360 per year just to drive your kids to school and get yourself to work and the grocery store. This doesn’t include the costs of all those goods that need to be trucked in. We will pay for that too.”

But that depressing news aside, Sims said there are some positives on the tax front for the year ahead.

Sims points to cuts to the Medical Services Plan, with payments sliced in half as of Jan. 1, 2018.

Sims explained that MSP reduction will save an average two adult home $900 per year in mandatory health care taxes. The government has promised to eliminate the MSP completely within their four-year mandate.

Sims said the CTF has long argued that this unfair, inefficient fee needed to be axed, and will maintain the pressure on government to get rid of it altogether, saving an additional $900 per year per average household.

“The CTF campaigned hard for a cut to MSP, so we’re very pleased this unfair tax will be halved.”

Federally, Employment Insurance (EI) premiums will rise slightly, costing employees and employers an additional $9 and $13 per year, respectively. The indexation of the Canada Child Benefit (CCB) will also come into force on July 1, 2018, leading to a slight decrease in payments to eligible families on Jan. 1.

“There are no dramatic income tax changes on the federal side,” said CTF federal director Aaron Wudrick. “Canadians can for the most part breathe easy, but they shouldn’t expect to have much more money in their pockets.”

Wudrick noted that while 2018 did not hold many large tax changes, Canadians can expect further changes in 2019.

“The Trudeau government has delayed imposing its national carbon tax until 2019, and Canada Pension Plan premiums will begin to rise annually as well,” said Wudrick.

“There is still considerable uncertainty on the business tax front, both with respect to the Trudeau government’s controversial small business tax proposals, and due to recent dramatic tax cuts south of the border which will impact Canada’s competitiveness.”


 


newsroom@vernonmorningstar.com

Like us on Facebook and follow us on Twitter.

Just Posted

Council concerned about blocking cannabis retail from Main Street

Cannabis policy expected to be ready for Penticton city council on Dec. 4

Penticton neighbourhood is fed up and wants urban deer solution

Urban deer discussion back on city council agenda

Open houses regarding transit between Penticton and Kelowna

The meetings will be held in Summerland, Princeton, Penticton, Peachland and Osoyoos on Dec. 4 and 5

Third fatality in 24 hours on South Okanagan roads

A vehicle incident closed Highway 3 for five hours Monday night

CONTEST: New year, new you

KimXO has partnered with Black Press Media and Third Space for a brand new contest

Okanagan dog back in owner’s arms after 18 days on the run after car accident

Penny the senior boxer is back home and doing well after missing for 18 days following car accident

Former NHL player and coach Dan Maloney dies at 68

Maloney coached the Toronto Maple Leafs and Winnipeg Jets

Ex-MSU president charged with lying to police about Nassar

Lou Anna Simon was charged Tuesday with lying to police during an investigation

Police aim to prevent retaliation after Hells Angel found dead under B.C. bridge

IHIT confirms Chad Wilson, 43, was the victim of a ‘targeted’ homicide

Otter makes a snack out of koi fish in Vancouver Chinese garden

Staff say the otter has eaten at least five fish

Police looking into two more incidents at private Toronto all-boys’ school

Police and the school have said two of the prior incidents involved an alleged sexual assault

B.C. lumber mills struggle with shortage of logs, price slump

Signs of recovery after U.S. market swings, industry executive says

25% of Canadians still won’t say they use pot, survey says

Statistics Canada poll says Canadians on average were 18.9 years old when they first tried pot.

Canucks’ 50/50 jackpot expected to surpass $1 million

The guaranteed prize for one lucky winner will be $500,000 minimum when Vancouver hosts LA Nov 27

Most Read