The BC government’s cancellation of the carbon tax will be completed by introducing legislation to drop the rate to $0, beginning Tuesday, April 1st.
This reduction of the tax to $0 follows the federal government’s decision to scrap the tax.
The Province says that the elimination of the carbon tax will save British Columbians around 17 cents per litre off the cost of fuel, as well as approximately 15 cents per cubic metre for natural gas on their home heating bill.
According to the BC government, the average amount of carbon tax that would have been paid in 2025-26 by families in BC is approximately $410.
“British Columbians are doing everything they can to reduce their emissions. But people shouldn’t have to choose between climate action and being able to afford their bills,” said Premier David Eby.
“That’s why we are eliminating the consumer carbon tax, which has become divisive at a time we need to be united.”
Despite the consumer carbon tax being cancelled Eby continued by saying the BC government will ensure big polluters continue to pay, encourage industry to innovate and give British Columbians affordable options to make sustainable choices.
Using an output-based carbon pricing system for big polluters in BC, the Province will support decarbonization efforts and incentivize affected industries to lower emissions, thereby avoiding paying the tax.
The climate action tax credit, which was intrinsically tied to the carbon tax to help offset the impacts of the tax on lower income BC residents, will also be cancelled as of April 1st.
The final payment will be distributed in April with the federal government’s GST/HST credit to those who are eligible.
“The carbon tax has been an important tool in BC for over a decade and half, but it has become too politically divisive and a distraction from the important issues we are tackling,” said Brenda Bailey, Minister of Finance.
“While this is a significant shift for our province, we will offset the impact while focusing on growing the economy during these challenging economic times.”
The Province says that ramifications of cancelling the tax and the credit will have an estimated impact of $1.99 billion in the coming fiscal year.
To make up for these lost funds, the Province will restructure programs funded by carbon tax revenue to minimize the impact on the budget.
