Budget states that it expects to collect $3.05 billion from the carbon tax this fiscal year, up an estimated 19 per cent
The carbon tax will rise again in April, increasing the cost of fuel at the gas pump and for home heating.
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The province’s 2025 budget states that it expects to collect $3.05 billion from the carbon tax this fiscal year, up an estimated 19 per cent from the last fiscal year.
But that could be temporary.
Currently, the federal government requires provinces to put a price on carbon.
B.C. Finance Minister Brenda Bailey acknowledged Tuesday that federal carbon tax changes could have an impact on her budget. She said the provincial government is working on contingencies to fill a potential budget hole, but did not say what those contingencies were.
“We don’t want people to have to choose between caring about the environment and affordability,” said Bailey.
In the budget, the B.C. government noted the projected carbon tax increase is a result of a recent growth in population, economic activity and a higher level of carbon tax.
The carbon tax will rise to $95 per tonne of carbon emissions, an increase of $15.
That means on April 1, motorists will be paying 20.9 cents a litre of carbon tax when filling up.
The carbon tax on natural gas will also add $435 to the average family’s home heating bills in the 12 months after the April 1 tax hike, said the taxpayers federation, which favours scrapping the tax.
The B.C. government returns much of the carbon tax to consumers in the form of rebates and to industry through green incentive programs.