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Alberta gas prices to reach 4 year high in 2018 due to increase in carbon tax
The carbon tax levy in Canada began in March 2007, when Alberta became North America’s first jurisdiction to legislate greenhouse gas reductions reports the Alberta Oil Magazine. The purpose of the putting a tax on carbon was to incentivize families and companies to lower their emissions to save costs (T8N Magazine-2017). However, since the introduction of the carbon tax, gas prices in Alberta Canada are reaching a 4 year high due to another increase.
As of January 1, 2018 Global News reports the carbon tax has increased another fifty percent and the increase is causing significant challenges to businesses and consumers. Higher regulations and taxes are causing strains at the pumps and depressing job creation in the oil and gas sector. This tax levy has a direct impact to the trucking industry as they are now forced to up their rates and companies who locked in their rates for 2018 year will be running at a deficit. In an effort to ensure transparency with billing, the CBC News states many trucking carriers have added a line to their invoices outlining the new charges for their customers.
So where is the tax money being spent? The Star reports the Climate Leadership Plan expects that over the next five (5) years the Canadian government will reinvest in Alberta by diversifying the energy industry to create jobs and help households and business adjust to the carbon tax levy. They will do this through funding of renewable energy sources providing support to energy efficient programs and offering cargo tax levy rebates to households and providing small business tax cuts. The results of whether the carbon tax is working is still being gathered.
Contributor: Stefani Wolfson
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References:
http://www.cbc.ca/news/canada/calgary/carbon-tax-surcharge-trucking-1.3906460
https://globalnews.ca/news/3940812/alberta-carbon-tax-increase-2018/
http://business.financialpost.com/commodities/energy/all-pain-and-no-gain-albertas-unpopular-carbon-tax-rises-by-50-this-week-fires-up-opposition
https://www.albertaoilmagazine.com/2016/12/a-brief-history-the-canadian-carbon-tax/
https://www.thestar.com/news/canada/2016/10/03/5-things-to-know-about-canadas-carbon-pricing-plans.html
http://www.t8nmagazine.com/albertas-carbon-levy/