Prime Minister Justin Trudeau stands during question period in the House of Commons on Parliament Hill in Ottawa on Monday, Oct. 22, 2018. THE CANADIAN PRESS/Sean Kilpatrick

Prime Minister Justin Trudeau stands during question period in the House of Commons on Parliament Hill in Ottawa on Monday, Oct. 22, 2018. THE CANADIAN PRESS/Sean Kilpatrick

Federal carbon tax rebates will exceed the cost for most people affected

Officials say 70 per cent of people in those provinces will get back more than they end up paying out as fuel costs rise to incorporate the carbon tax.

The federal government will return 90 per cent of all the money it collects from a carbon price directly to the Canadians who pay it.

Prime Minister Justin Trudeau is unveiling the details of the carbon tax rebates, dubbed the Climate Action Incentive, as he tries to sell Canadians on the need to pay for pollution without breaking their pocketbooks.

The remaining 10 per cent will be handed out to small and medium-sized businesses, schools, hospitals and other organizations who can’t pass on their costs from the carbon tax directly to consumers.

The rebates will only apply in Saskatchewan, Manitoba, Ontario and New Brunswick — the four provinces which have refused to impose their own carbon price — and the average household payments in those provinces will range from $256 to $598.

Officials say 70 per cent of people in those provinces will get back more than they end up paying out as fuel costs rise to incorporate the carbon tax.

They will also get a four month reprieve from the carbon tax as the government pushed the implementation of its $20 per tonne tax to April 1 to give more time to fuel distributors and other companies the time they need to put it in place.

Trudeau says his new carbon tax rebate system puts a price on pollution without breaking the bank for families.

Related: Carbon tax, sales tax breaks finally make B.C. LNG happen

Related: Chilliwack MLA wants next B.C. Liberal leader to create mountain monument

He gave a preview of the plan in two separate radio interviews earlier today.

“The vast majority of families are receiving more money back from this incentive than they pay in extra costs for the price we’re putting on pollution,” the prime minister told the radio station 1310 News.

He told CBC that ”every resident” will be compensated “for the extra costs.”

Trudeau has promised many times every penny collected from the carbon price will be returned to families and businesses and other organizations in the province where the money is raised.

The carbon tax is set to be a critical element for debate in the next federal election with the Conservatives promising to scrap it if they are elected and growing push back from premiers. Trudeau believes Canadians will be on the side of pricing pollution in order to ensure emissions are cut and climate change is kept in check.

“We know putting a price on pollution is a fundamentally essential tools to actually fighting climate change,” he told 1310.

“But we also know we need to make sure that families are ok and that’s why we’re going to be compensating families and Canadians in the provinces in which we’re bringing in a price on pollution.”

Trudeau, Environment Minister Catherine McKenna and Finance Minister Bill Morneau are in the heart of Ontario Premier Doug Ford’s support base in Toronto to make the announcement. Ford has been among the most critical of the carbon tax and immediately cancelled Ontario’s cap and trade system when he was elected earlier this year.

Trudeau applauded the provinces that have a carbon plan, and said the others “have not gotten to the place where they’re actually putting a price on pollution so they continue to want to make pollution free.”

“We think that shouldn’t happen,” he said.

Ottawa announced two years ago it would require every province to have a price on emissions, and that it would impose one on those who refused. The current requirement is for it to be $20 a tonne by Jan. 1, rising $10 each year until it hits $50 a tonne in 2022.

Mia Rabson, The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A man wearing a face mask to prevent the spread of COVID-19 walks past a mural in Vancouver on Monday, Nov. 30, 2020. THE CANADIAN PRESS/Marissa Tiel
212 new COVID-19 cases in Interior Health over the weekend

A total of 490 cases remain active; 15 in hospital

This is the third year Raymond Imbeau and Barbara Kitz have picked up cans in the backcountry and donated the proceeds to COSAR. (Central Okanagan Search and Rescue)
Kelowna couple cleans forests for Central Okanagan Search and Rescue

Raymond Imbeau and Barbara Kitz donated $3,200 to COSAR

Lights will be on display for the annual Candy Cane Lane in Rutland until Jan. 1. - Mackenzie Britton/Capital News
Kelowna’s Candy Cane Lane to celebrate a decade of holiday lights

The event will run from Dec. 1 to Jan. 1, 2021

The video was used for (KGH Foundation - YouTube)
Okanagan filmmaker, poet win at L.A. Film Awards

Spoken word artist Shane Koyczan wrote and filmmaker David Nault produced the commercial

The Mission will be opening a temporary winter shelter starting on Dec. 1. (Kelowna’s Gospel Mission)
Gospel Mission’s winter shelter opens in downtown Kelowna

The temporary winter shelter will be in the former Kelowna Daily Courier offices

A B.C. Ambulance Service paramedic wearing a face mask to curb the spread of COVID-19 moves a stretcher outside an ambulance at Royal Columbia Hospital, in New Westminster, B.C., on Sunday, November 29, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C. records deadliest weekend of COVID-19 pandemic with 46 deaths; more than 2,300 cases

Provincial health officer Dr. Bonnie Henry provides COVID-19 update

Fossil finds at Mt. Stephen. (Photo: Sarah Fuller/Parks Canada)
Extreme hiking, time travel and science converge in the Burgess Shale

Climb high in the alpine and trace your family tree back millions of years – to our ocean ancestors

Join Rob Dinwoodie and bandmates for a Cowboy Christmas, Dec. 11 and 12 at Vernon and District Performing Arts Center. Seating is cabaret style on the stage for an intimate concert. (Contributed)
North Okanagan cowboys go virtual for Christmas

Cowboy Christmas streamed Dec. 11-25

Vernon is getting in the Christmas spirit with many homes decorating with lights and extras. (Caitlin Clow - Morning Star)
Christmas lights tour mapped out by Vernon realtor

More than 20 of the community’s best lit houses make up annual tradition

Kettle bells sit aligned in an indoor fitness studio. (PIxabay.com)
1 COVID-19 case at a B.C. fitness studio leads to 104 more infections, 6 school exposures

According to case data released by Fraser Health, one case of the novel coronavirus carries a big impact

Vehicles drive past a display thanking essential workers in Burnaby, B.C. on Sunday, Nov. 29, 2020. THE CANADIAN PRESS/Marissa Tiel
B.C. changing COVID-19 case reporting as virus spread continues

Manual counting takes more time, leads to errors

Salmon Arm RCMP say some patrons have been harassing local businesses over mask requirements. (Lachlan Labere-Salmon Arm Observer)
Police urge respect after Salmon Arm businesses report being harassed over mask rules

Wearing of masks in businesses and public spaces is currently mandated by the province

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Salmon Arm RCMP officers attended two public COVID-19 demonstrations held in Salmon Arm on Saturday, Nov. 28.  (File photo)
Organizer of Salmon Arm COVID-19 demonstration fined $2,000 by RCMP

Police said some participants weren’t aware of the public health order prohibiting gatherings

Most Read