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Carbon tax ruling impacts to be felt in B.C.: expert

Last Updated May 4, 2019 at 1:42 pm PDT

Summary

At 9.8 cents a litre of gas, with GST, B.C.'s carbon tax is still above the national minimum

BC won't raise prices as steeply as others to make the government's target of $50 a tonne of CO2 emissions by 2022

The cost of goods and services, however, could increase nation-wide as transportation costs rise.

VANCOUVER  (NEWS 1130) – The Saskatchewan Court of Appeal’s ruling that a federally imposed carbon tax is constitutional means other provinces could see a sharper jump in the price of gas than B.C., but one expert says it will still impact the cost of living across the entire country.

At 9.8 cents a litre of gas, with GST, B.C.’s carbon tax is still above the national minimum, meaning the province won’t have to raise prices as steeply every year as others to make the government’s target of $50 a tonne of CO2 emissions by 2022.

“Ontario and other provinces that didn’t have a carbon tax will see their relative costs to carbon tax increases of about 2.5 cents a year,” Dan Mcteague with GasBuddy.com said. “Whereas B.C. has gone up by a penny every year, Ontario and other provinces will be playing catch up.”

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The cost of goods and services, however, could increase nation-wide as transportation costs rise.

“Transportation by air, truck or rail is all affected by the federal or provincial government’s moves on carbon tax,” Mcteague said. “That means, generally speaking, anything that moves by fossil fuels will see a rather more significant impact.”

The court ruling could also be for nothing, he cautions, if an anti-carbon tax party wins the federal election this October.