Carbon tax hike takes effect today: Here’s what to know

In Ottawa this morning, Canadians wake up to news of increased expenses at the gas pump and on home heating. The national carbon tax sees a $15 per ton hike, translating to a $1.65 uptick in filling a standard 50-liter gas tank. Our correspondent, Scott Hurst, sheds light on the implications of this change. Scott, good morning. How is this impacting Canadians today?

Good morning, Renee. The carbon tax sees a notable 23% surge, slated for annual increments until the decade’s end. This surge sparks controversy, as federal opposition voices dissent against the carbon tax hike. Over recent weeks, up to seven premiers have joined the chorus of disapproval, citing concerns over the $1 increase. While Canadians don’t directly pay per ton, they’ll feel the pinch, with gas prices inching up by an average of 3 cents per liter. Home heating costs and other indirect purchases are also affected. The affordability debate has the conservatives rallying, with recent attempts to trigger a carbon tax election. Despite mounting opposition, the Liberals stand firm, asserting the hike’s implementation on April 1st.

Indeed, there’s significant pushback. How does the government defend its stance?

The government underscores this as a pivotal climate initiative, aligning with broader strategies to curb carbon emissions and combat climate change. Minister Jonathan Wilkinson champions the tax, touting it as the most cost-effective means to reduce emissions. While acknowledging affordability concerns, the Liberals emphasize forthcoming rebate increases. They assert that eight out of 10 Canadians will receive more in rebates than they pay in carbon tax. However, dissent persists, evident in rallies across major cities and an upcoming “Ax the Tax” rally led by Conservative Leader Pierre Poilievre in Nanaimo, British Columbia, later today.