Carbon tax rebates to residents in provinces under the federal framework will be smaller than promised next year.
The federal government said before Christmas that the payments people apply for on their annual income tax returns would be smaller now that better data is available.
“Climate Action Incentive payment amounts have been adjusted based on updated projections of fuel charge proceeds generated in each province for the relevant period,” said a finance department backgrounder on the change.
The payments are supposed to encourage people to make changes to reduce their greenhouse gas footprint and become more energy efficient.
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Saskatchewan residents will see the largest change as payments for a family of four drop to $809 from $903. In Manitoba, the rebate will drop to $486 from $499, and in Ontario it will be just slightly smaller at $448, compared to the expected $451.
Alberta is now also included under the framework. A family of four there will see a rebate of $888.
This comes as the carbon tax rises to $30 a tonne in 2020, adding another 2.2 cents per litre at the gas pump.
Saskatchewan Environment Minister Dustin Duncan wasn’t happy about the smaller rebate.
“I would just say, obviously, we’re disappointed in the news and Merry Christmas from the federal government,” he told reporters.
However, Duncan’s tone changed somewhat after a Dec. 19 meeting in Regina with federal Environment Minister Jonathan Wilkinson. Although the carbon tax remains a contentious issue between the two jurisdictions, he said there were many areas on which the two agreed that they could work together.
“This is probably the most jovial I have felt after meeting with a minister of environment for some time,” Duncan said.
It wasn’t all good news.
Duncan said Wilkinson advised him that the federal government will examine whether the carbon price should rise beyond the $50 per tonne it will hit in 2022. That’s a change from former Environment Minister Catherine McKenna’s assertion that it would not go up.
Several provinces continue their court challenges of the federal framework.
New Brunswick was previously opposed but after the federal election decided to make its own proposal, which Ottawa recently accepted.
New Brunswickers will end up paying about one cent more per litre.
“My understanding is that essentially they’re going to put about a four cent a litre carbon tax on fuel and then do a corresponding reduction in their fuel tax by about three cents a litre,” said Duncan.
“I mean, if that’s the case, good for New Brunswick … but if that’s the case then what are we talking about?”
The minister said Saskatchewan has no plans to move before the Supreme Court rules on its challenge.
He also said when he and Wilkinson met they did not have a specific discussion about the carbon tax cost applied when drying grain.
