What is the True Carbon Tax Cost for Alberta?

The Canadian Taxpayers Federation is shining a light on the high cost of the federal carbon tax before rebates are provided to Alberta families tomorrow.

“Families are still paying hundreds of dollars in carbon taxes every year even with the rebates,” said Franco Terrazzano, Federal Director of the CTF. “The Trudeau government claims families will be better off. But the Parliamentary Budget Officer’s numbers show the government is using magic math because the carbon tax will cost the average Alberta family $671 this year even with rebates.”

The Trudeau government claims that “families are going to be better off” with its carbon tax and rebate scheme. However, a PBO report shows this is incorrect.

The carbon tax will cost the average Alberta household $2,004 this year and they will receive $1,333 in rebates. That means the average Alberta household will still pay $671 extra in carbon taxes in 2022 even with the carbon tax rebates, according to the PBO.

Prime Minister Justin Trudeau says he will continue to raise his carbon tax to nearly 40 cents per litre of gas within the next eight years.

In addition to the carbon tax, the federal government charges a sales tax and fuel excise tax on gasoline. Combined, all of these federal taxes on gasoline cost Alberta drivers 28 cents per litre, or about $22 when filling up a minivan.

The federal government is also planning to impose a second carbon tax through fuel regulations in 2023. It will add up to 13 cents per litre to the price of gas by 2030, according to analysis by Environment Canada. There are no rebates for the second carbon tax.

“It’s wrong for Trudeau to keep hiking up his carbon taxes while drivers can barely afford to fuel up their vehicles now,” said Kris Sims, Alberta Director of the CTF. “Trudeau should follow Alberta Premier Jason Kenney’s lead and provide relief by cutting the big tax bill at the pumps.”