Liberals’ Plan to ‘Tax a Tax’ Direct Contradiction to Promised Revenue Neutral Carbon Price for Provinces

July 6, 2017

The Federal Liberals stand to make almost $280 million in revenues from provincial carbon taxes in Alberta and British Columbia over the next two years, according to a new report released from the Library of Parliament.

“Both Prime Minister Justin Trudeau and his Environment Minister have claimed over and over again that their federally imposed carbon tax scheme would be revenue neutral for Ottawa,” said Shannon Stubbs, Member of Parliament for Lakeland and Deputy Critic for Natural Resources. “The Liberals have insisted they would not collect revenues from any provinces, but this report proves the complete opposite. How are Canadians supposed to believe anything this Prime Minister says?” said MP Stubbs.

The revenues will come from a CRA requirement, meaning provincial governments will have to apply 5 per cent GST on top of the carbon tax in their jurisdictions.

“Canadians are willing to pay their fair share of taxes, but they are being tricked by the Liberals into paying even more. The Liberals have insisted they are standing up for middle class Canadians. But, a carbon tax directly affects the MOST vulnerable Canadians, making everything from the gas in their cars to the groceries on their table more expensive. Now, the Liberals are mandating a tax on a tax, which will force businesses to pass on even more costs to every day families trying to make ends meet,” said Stubbs.

Currently, Alberta and British Columbia have implemented taxes on greenhouse gas emissions. In Alberta, the Liberals could collect up to $65 million during 2017-2018, and up to $85 million in 2018-2019. If the rate was to increase to $50 per tonne in 2018-2019, the amount of GST revenue could grow to $140 million in Alberta alone.

“This shameless tax grab is unfair to Canadians and it’s not what the Prime Minister promised them. My colleague Mark Warawa, Member of Parliament for Langley—Aldergrove, has tabled a bill that will seek to amend the Excise Tax Act to exclude the collection of GST/HST on provincial carbon pricing systems. I will be working alongside my Conservative colleagues to ensure this bill is debated and continue to stand up for Canadians against this shameless tax on a tax.”