The B.C. carbon tax rate will increase from 5.56 cents per litre to 6.67 cents per litre on Sunday, July 1, 2012.
“In B.C., July 1st has become synonymous with gas tax increases,” said Jordan Bateman, the CTF’s B.C. director. “This is the third straight year the carbon tax has increased and taxpayers are struggling under the weight of B.C.’s massive gas tax burden.”
Earlier this year, on the CTF’s Gas Tax Honesty Day, Bateman outlined that the carbon tax increase will push British Columbians to pay a record $1.8 billion in gas taxes this year. The Lower Mainland, paying a continent-high 49.1 cents per litre in gas tax, contributes more than a billion dollars.
While the carbon tax is technically revenue neutral for government, many of the offsetting tax cuts do not help the average taxpayer paying at the pump. Among other tax offsets, the B.C. Budget lists the small business venture capital tax credit, a corporate income tax cut, an industrial property tax credit, interactive digital media tax credit, scientific research tax break and a film industry tax break as offsetting the carbon tax.
“These off-setting tax cuts don’t do much to help drivers and families straining to make ends meet. Most of the families I know fill up their cars with gas, but very few of them engage in scientific research, film production or own industrial property,” said Bateman. “This tax is driving up the cost for delivering goods and services—the quickest way to save taxpayers money is for B.C. to scrap the carbon tax.”
The CTF will be making a written submission to the provincial government’s carbon tax review, calling for the tax to be scrapped.
It’s not just gasoline that faces a carbon tax increase; propane and natural gas are also affected.
“When you fire up your barbecue on the Canada Day long weekend, remember you’re paying the government more for the privilege,” said Bateman. “The carbon tax drives up the cost of everything in B.C.—already a very expensive place to live.”
For a regional breakdown of total gas taxes paid (Lower Mainland, Victoria, rest of B.C. and total B.C.), please see our backgrounder
here.
For a graphic on Lower Mainland gas taxes and revenue, click
here.
Jordan Bateman, B.C. Director
