By Scott Roblin

Provincial carbon tax increase drawing local reaction

Jan 2, 2018 | 4:41 PM

MEDICINE HAT, AB – Filling a tank of gas or turning on a thermostat is now more expensive in Alberta.

The province raising their carbon tax on New Year’s Day by 50 percent, jumping from $20 per tonne of carbon dioxide emissions to $30 per tonne.

Chris Hellman operates Mr. Lube in Medicine Hat and said the jump will make it more expensive to heat his building.

“We have to open the bay doors twice for each customer that comes in, and we lose heat every time we do that.”

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Alberta residents can expect to pay two-and-a-half-cents more at the pump and a 50 cents per gigajoule more to heat a home with natural gas.

Though political science instructor at Medicine Hat College Jim Groom said it likely won’t be a big jump for most home owners.

“If it is as they suggest it’s going to be, it should have a pretty minor impact in that way. How it rolls out is going to be the real question I think.”

Around 60 percent of Albertans are eligible to receive a partial or full rebate from the province, with those in lower tax brackets getting more of a break.

Single Albertans earning $47,500 per year or under could receive $300, a couple earning a combined $95,000 or under could receive $450, and a family with two children earning $95,000 or under could get $540.

Businesses won’t be receiving these rebates, though the province has lowered their small business corporate tax rate by one percent to help off-set the carbon tax.

Deputy Premier Sarah Hoffman said for those receiving rebates, the monetary impact of the carbon tax will be minimal.

“I don’t think it has been as shocking to Albertans on the cost side as many would want you to believe it would be.”

According to the province, the money collected from the carbon tax will be reinvested into energy efficient projects, public transit, and other green technologies.

The United Conservative Party has been outspoken on the tax, calling it ‘economic pain with no environment gain’ that punishes the business community.

Cypress-Medicine Hat MLA Drew Barnes has been an opponent of the hike, and said Alberta is too dependent on the oil and gas sector for this tax to work.

“Too many parts of Alberta are based on commodities, and that means driving to our oil and gas fields, driving to our farms, driving to our forests. And, that means driving is not optional.”

Groom added plans by the federal government to introduce their own carbon tax for provinces without their own likely meant this increase was inevitable.

“With the exception of Saskatchewan, everybody has sort of bought into this. And of course if we didn’t buy into it, the federal government within a year would have imposed something on us.”

The City of Medicine Hat is reporting almost $4.5 million was earmarked for Edmonton as part of the carbon tax, through their natural gas services collected from home owners.

Hellman said he’s in favour of green practices, but not those that he says punish business owners.

“I’m for doing things to help the environment, but I think there’s better ways of doing it rather than just burdening business with costs.”

Tax rebates from the province are expected to be sent out next week.