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B.C. government introduces carbon tax on fossil fuels starting July 1 |
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Written by Scott Sutherland, THE CANADIAN PRESS
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Monday, 28 April 2008 |
VICTORIA - The B.C. government introduced legislation Monday for its carbon tax that will see a cut in greenhouse gas output and an increase for those heating their homes or driving their vehicles.
The phased in tax which was promised in the February budget will start Canada Day.
"Bill 37 introduces a ground-breaking, revenue-neutral carbon tax that will encourage all British Columbian families and businesses to lower their carbon footprint," said Finance Minister Carole Taylor as she introduced the Carbon Tax Act 2008.
Taylor told MLAs and the public galleries filled with green activists, climate change advocates and public service tax experts that the carbon tax will help meet the goal of reducing emissions by 33 per cent by 2020.
The new tax will impose a surcharge of $10 per metric tonne of carbon dioxide emissions in the first year, climbing to $30 per tonne by 2012.
At service station pumps across the province that will translate to a price increase of about 2.5 cents per litre of gasoline and about 2.75 cents per litre of diesel fuel starting July 1.
By 2012 the increase to a litre of gasoline will be about 7.25 cents per litre.
On the home heating front, it will mean an immediate 50 cent per gigajoule jump in the price of natural gas and an increase of more than 2.75 cents per litre of furnace oil.
Taylor said the tax will be as broad-based as possible, taking into account existing limitations to measurement and will apply to virtually all emissions from fossil fuel combustion.
Those emissions account for about 70 per cent of B.C.'s current greenhouse gas output.
Key to the tax legislation is a requirement that it be "revenue neutral."
"It will require the minister of finance ... to ensure that all of the dollars that come in from a carbon tax are returned to the people and the businesses of B.C. through tax cuts," Taylor said. "It will be the law."
The government estimates that in the first three years alone the carbon tax will generate $1.849 billion in revenue.
The new tax has won over a coalition of 16 environmental groups, many of which sent representatives to the B.C. capital for the introduction of the legislation.
"When it comes to action on climate change, B.C.'s decision to put a price on carbon emissions makes it a leader," said Ian Bruce, a spokesman for the David Suzuki Foundation.
Also present were members of the B.C. branch of the Sierra Club, the Pembina Institute, the Western Canada Wilderness Committee and the B.C. Sustainable Energy Association in Victoria.
"British Columbia is leading not just Canada, but the world, in this issue," said Taylor. "We have looked everywhere to find another carbon tax that is as broad-based ... we can't find any other model in the world that is so comprehensive."
She also noted that the legislation will protect low-income British Columbians, who will receive a quarterly tax credit.
While a carbon tax is supported in a general way by the B.C. Opposition, the New Democrat environment critic had reservations about whether Bill 37 will be effective .
"Will it be fair to all British Columbians, and is it a tax that will actually lead to a reduction in emissions," asked Shane Simpson. "What we've seen so far, with the government's cap and trade bill, was a piece of vacuous legislation."
Simpson said outlying rural and northern areas in B.C. have very real concerns about being unduly penalized by the new carbon tax.
"It's very disconcerting that the government is ramming this stuff through when it probably isn't going to be effective."
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Last Updated ( Monday, 28 April 2008 )
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