Carbon tax rising January 1 in Sask., Man.

December 31, 2019, 2:45 am
Kevin Weedmark

While the federal carbon tax will be increasing by 50 per cent in 2020, from $20 per tonne to $30 per tonne, the rebate Saskatchewan and Manitoba residents will get from the federal government to compensate for the tax will be reduced from the amount originally projected.

The federal government has decreased the carbon tax rebates Canadians were told they could expect in the new year in Saskatchewan, Manitoba, and Ontario, while Alberta residents will be paying the carbon tax and receiving a refund for the first time in 2020.

The biggest drop in the rebate will be in Saskatchewan, where the federal Finance Department says a family of four will qualify for rebates totalling $809 in 2020, down from the $903 that was projected last year.

Families in Manitoba will receive $486, a decrease from the projected $499.

A family of four in Alberta will see a rebate of $888 in 2020. There was no projected figure for Alberta as the carbon tax will be applied in Alberta for the first time in 2020.

The rebates are meant to offset the added consumer costs resulting from Ottawa’s carbon tax of $20 per tonne of carbon emitted into the atmosphere for 2020, rising to $30 per tonne in 2021.

On natural gas in Saskatchewan, the rate will be rising from 3.91 cents per cubic metre to 5.81 cents per cubic metre, which amounts to about a 60 per cent tax on the actual price of natural gas, which is 9.98 cents per cubic metre.

In 2021 the rate on natural gas will rise to 7.83 cents per cubic metre, which amounts to about an 80 per cent tax on the actual price of natural gas.

In 2022, the carbon tax will rise to 9.79 cents per cubic metre, which equates to a tax rate of 98.01 per cent on the current price of natural gas—9.98 cents per cubic metre.

There are no rebates for businesses.

Here are the rebate amounts for individuals and families, by province, in 2020, according to a government statement:

Saskatchewan:
Single adult or first adult in a couple — $405
Second adult in a couple or first child of a single parent — $202
Each child under 18 — $101
Baseline amount for a family of four — $809

Manitoba:
Single adult or first adult in a couple — $243
Second adult in a couple or first child of a single parent — $121
Each child under 18 — $61
Baseline amount for a family of four — $486

Alberta:
Single adult or first adult in a couple — $444
Second adult in a couple or first child of a single parent — $222
Each child under 18 — $111
Baseline amount for a family of four — $888

Ontario:
Single adult or first adult in a couple — $224
Second adult in a couple or first child of a single parent — $112
Each child under 18 — $56
Baseline amount for a family of four — $448