Carbon Tax Review
As part of Budget 2012, the government committed to undertake a comprehensive review of the carbon tax and its impact on British Columbians. The review covered all aspects of the carbon tax, including revenue neutrality, and considered the impact on the competitiveness of B.C. businesses such as those in the agriculture sector, and in particular, B.C.’s food producers.
Every dollar generated by the tax is returned to British Columbians through reductions in other taxes. Since it was first introduced in 2008, it has returned $500 million more to taxpayers in reductions than it has raised in revenue. Tax cuts include such measures as income tax credits for low-income individuals, 5% reductions to the first two personal income tax rates and a northern and rural homeowners’ property tax benefit of up to $200 annually, as well as reductions to business taxes.
British Columbians had the opportunity to share their thoughts on the carbon tax and make their voices heard in the review. Written submissions were made to the Minister of Finance and were considered as part of the 2013 budget process.
June 27 to August 31, 2012
The Ministry of Finance received more than 2,200 submissions from individuals, businesses, industry associations, environmental organizations, local government and other stakeholder groups, organizations, associations and entities.
Input leads to action:
The results of the Carbon Tax Review, as reported in the Budget 2013 June Update, were as follows:
- Carbon Tax Rates maintained at $30 per tonne of CO2e
- Carbon Tax Base not expanded
- Revenue Neutrality of the carbon tax maintained
- Partial grants to commercial greenhouse operators change from a one-time grant to an ongoing annual grant
- Effective January 1, 2014, exemption provided for coloured gasoline and coloured diesel purchased by farmers for the same farm purposes that farmers are authorized to use coloured fuel under the Motor Fuel Tax Act.