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Revenue Neutral Carbon Tax
News: April 27, 2012 - Blog Article: Environment Minister Terry Lake Invites Your Carbon Tax Ideas on Twitter
Also refer to the following attachment:
• BC Carbon Tax - Key Facts & Stats (PDF/320KB)
The British Columbia revenue neutral carbon tax was implemented on July 1, 2008.
The tax applies to the retail purchase or use of fuels in British Columbia, such as gasoline, diesel, natural gas, heating fuel, propane and coal, and to peat and tires when used to produce energy or heat.
The carbon tax is based on the following principles:
- All carbon tax revenue is recycled through tax reductions – The government has a legal requirement to present an annual plan to the legislature demonstrating how all of the carbon tax revenue will be returned to taxpayers through tax reductions. The money will not be used to fund government programs.
- The tax rate starts low and increases gradually – Starting at a low rate gives individuals and businesses time to make adjustments and respects decisions made prior to the announcement of the tax. There is also certainty about the rates for the first five years.
- Low-income individuals and families are protected – A refundable Low Income Climate Action Tax Credit ensures that those with lower incomes are compensated for the tax, and that most will be better off.
- The tax has the broadest possible base – All emissions from fossil fuel combustion in B.C. captured in Environment Canada’s National Inventory Report will be taxed, with no exemptions except those required for integration with other climate action policies in the future and for efficient administration.
- The tax will be integrated with other measures – The carbon tax will not, on its own, meet B.C.’s emission-reduction targets, but it is a key element in the strategy. The carbon tax and complementary measures such as the “cap and trade” system will be integrated as these other measures are designed and implemented.
This groundbreaking legislation was supplemented by a $100 Climate Action Dividend that was distributed to all British Columbians in 2008.
For more information, visit the Ministry of Finance.