Carbon tax: Ottawa will impose its model on three Atlantic provinces

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Carbon tax: Ottawa will impose its model on three Atlantic provinces

Consumers in the Atlantic, except those in New Brunswick, will start paying the carbon tax according to the federal government's model in July 2023.

The Government of Canada will impose its carbon tax to consumers in Nova Scotia, Prince Edward Island and Newfoundland and Labrador beginning in July 2023.

The Minister of Environment and Climate Change, Steven Guilbeault, will make the announcement on Tuesday, CBC has learned.

These three provinces will thus join Alberta, Saskatchewan, Manitoba and Ontario where the federal model is currently in effect. New Brunswick, the Northwest Territories and British Columbia continue to manage their own carbon pricing.

Federal pricing will take effect in all three provinces on July 1. July. The government expects to begin making its Climate Action Incentive (CAIP) payments in the coming weeks. These consumer payments are non-taxable.

PIACs are usually conducted in January, April, July and October. They are part of the federal government's plan to return 90% of the money collected through the carbon tax to consumers.

A family of four, for example, in these three provinces of Atlantic, could receive $240 to $400 every three months, according to a senior federal government official who is not authorized to speak about it publicly.

Ottawa on Monday announced a grant of up to $5,000 to help low- and middle-income Canadian households switch from an oil heating system to a heat pump.

The tax carbon currently stands at $50 per tonne of carbon dioxide equivalent. It is expected to increase to $65 per ton in 2023 and up to $170 per ton by 2030.

In principle, the carbon tax takes into account the total cost increasing greenhouse gas emissions (forest fires, heat waves, droughts, floods). By tying these costs to the consumption of fossil fuels, the government hopes to convince consumers and businesses to choose less polluting options.

The Liberal government believes that pricing carbon is the best way to put a price on pollution and spur innovation.

Based on a report by David Thurton, from CBC

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