By Liam Verster

Carbon Tax

Local critic says Federal Carbon Tax will hurt Albertans, not reduce emissions

Dec 30, 2019 | 1:06 PM

The federal carbon tax is rolling out in Alberta, starting January 1st.

After the provincial carbon tax was abolished in June, the federal government stepped in to implement a carbon pollution price of $20 per tonne of carbon dioxide equivalent. That carbon price will run through March 2020, and then go up to $30 per tonne In April 2020, and last until March 2021.

Rob Petrone with the Grande Prairie Petroleum Association is critical of the tax, saying it will have serious impacts on average Albertans.

“Especially for people living up North here. Especially the Grande Prairie, Fort McMurray area, where we rely on natural gas to heat our homes and gasoline to drive our vehicles to get home or to and from work, and take our kids to soccer and sports and stuff. It’s essentially a necessity.”

He says it’s frustrating to see Albertans face more taxes, especially because he doesn’t expect the tax to have any effect on the day to day activities of Albertans, or the amount of emissions they produce.

Under the new tax, Albertans will be receiving a rebate to reflect the fuel charge proceeds generated between January 2020 and March 20201, through the 2019 personal income tax returns. The Climate Action Incentive payment amounts vary per household.

– $444 for a single adult or the first adult in a couple

– $222 for the second adult in a couple will receive. Single parents will also receive this amount for their first child.

– $111 for each child in the family. For single parents, this will start with their second child.

Based on these amounts, an average household of four will receive $880. This figure will represent the initial 15-month period, but in the future, rebates will only reflect a 12-month period.

Petrone is also skeptical of these rebates, questioning why they bother collecting a tax in the first place if the government is just going to send it back to the public anyway.

Though most Albertans will be subject to the taxes, there are exemptions. Farmers, fishers, registered emitters or users of fuel, and more, can apply for exemption certificates. Those in remote communities may also find exemptions.

Businesses can also receive some support from the federal government, by investing in energy-saving equipment or retrofits.

Petrone says these types of energy-saving measures are already being put in place across Alberta, especially in the oil and gas industry.

“Industry on its own has done a phenomenal the last five years reducing their emissions. We feel, as an industry, that we’ll be able to meet the targets on greenhouse gas reductions with some of the incentives, or some of the initiatives we’ve got on the go. So again, I find it somewhat concerning and disturbing that government has to tax consumers and industry on something that, at the end of the day, it’s just a tax that the government just collects and then distributes.”

He adds that some of those initiatives that have already been put in place include harnessing solar energy at well sites and using new technologies to reduce methane gas venting.

The United Conservative Party, who repealed the provincial carbon tax created under the NDP, are still fighting to be exempt from the pollution tax. The province has taken the federal government to court, saying implementing the tax under the guise of a national concern sets a precedent that would allow Parliament to step in on other provincial matters whenever it wants.

Ontario and Saskatchewan have also tried to fight the federal carbon tax, and though the decisions weren’t unanimous, the courts did rule in favour of the federal government in both cases.