Canada: Carbon tax revenue not neutral
Both Prime Minister Justin Trudeau and Environment Minister Catherine McKenna have long insisted Ottawa would collect no revenue from the carbon price the federal government is requiring the provinces and territories impose by 2018.
However, a new report from the Library of Parliament shows federal coffers stand to benefit financially when the five per cent GST is applied on top of carbon taxes built into the prices of goods and services such as gasoline or utilities.
In April 2016, the Canada Revenue Agency said provincial carbon taxes would be subject to GST. Warawa asked the library to find out how much Ottawa stood to gain as he prepared a private members’ bill to reverse the CRA’s decision.
Last week, the answer came back: as much as $130 million this year and $150 million next year in Alberta and B.C., the two provinces where carbon taxes are already in place.
Read more at the National Post
