Federal government announces carbon tax details

By CHAT News Today
May 18, 2017 - 4:56pm

OTTAWA — Polluters will pay.

That was the message delivered to the province’s today from Environment Minister Catherine McKenna.

The Trudeau government laid down the rules today in regards to details of a federal carbon price plan which will be imposed on any province that doesn't have at least a $10 a tonne price on carbon as early as next spring. The exact date will depend on when the legislation, expected this fall, passes.

The federal plan mimics the Alberta carbon program, with a direct tax on heating and transportation fuels and a separate levy on large emitters who don't cut their emissions by a targeted amount.

Provinces and territories have until next year to set up a levy on emissions, create a cap=andtrade system, or use a hybrid model.

If they don’t, Ottawa will impose its own model on provinces.

Carbon will be priced at $10 per tonne, riding every year until 2022, when it reaches $50/tonne.

At that point, it would add nearly 12 cents to the cost of a litre of fuel.

Saskatchewan remains the only province that has not implemented its own carbon pricing, with Premier Brad Wall saying a carbon tax will hurt the province’s economy. Wall has said he is prepared to take Ottawa to court over the tax.

McKenna says she’s confident Ottawa has the authority to impose a carbon tax across the country.

-With Files from The Canadian Press

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