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Your B.C. Government

Carbon Tax

B.C.'s revenue-neutral tax on carbon emissions taxes pollution and returns all the revenue collected to British Columbians through tax cuts in other areas. This tax shift encourages everyone in the province to reduce their carbon emissions which will allow people to save money while protecting the environment.

What your B.C. Government is doing to combat climate change through Carbon Tax:

  • Since the carbon emissions tax was first introduced, the price of gas has dropped by more than 30 per cent in B.C.
  • It's estimated that B.C.'s carbon tax will save up to 3 million tonnes of CO2 emissions annually – that's equal to taking almost 800,000 cars off the road each year.
  • Climate experts agree that in order to meet our 33 per cent emissions reduction target by 2020, we have to put a price on carbon. We have done that in a way that returns the benefits to taxpayers
  • The carbon tax introduced on July 1, 2008 equals 2.34 cents per litre of gas. The price will go up by 1.17 cents per litre each July until 2012.
  • The carbon tax is a tax on pollution that is designed to cut other taxes. Under law, every cent of the $2.3 billion collected will be returned to taxpayers through personal, small business and business income tax cuts:
    • Personal income taxes cut by 5 per cent
    • Small business corporate income taxes cut by 44 per cent
    • Corporate income taxes cut by 17 per cent (by 2011)
    • School property taxes for farm land cut by 50 per cent (in 2011)
  • Your B.C. Government increased the Low Income Climate Action tax credit to low-income families by 5 per cent. That means low-income families are eligible for $105 per adult and $31.50 per child annually. This new benefit will put an additional $15 million a year back in the pockets of the families and individuals who need it most.
  • In 2008, every B.C. resident received a $100 climate action dividend cheque to help British Columbians make smart choices to reduce their carbon footprint.
  • As a result of these tax cuts, B.C. will have the lowest income taxes for individuals earning up to $118,000 annually. Since 2001, the vast majority of earners have had at least a 37 per cent provincial income tax cut and an additional 325,000 people no longer pay any B.C. income tax.
  • The carbon tax applies to everyone who burns fossil fuels in B.C. – industry and individuals. 70 per cent of the cost is paid by business and industry.
  • Your B.C. Government is providing a Northern and Rural Homeowner benefit of up to $200 for homeowners in the area of the province outside the Capital Regional District, Greater Vancouver Regional District and Fraser Valley Regional District for the 2011 tax year.
  • The Province will increase the Industrial Property Tax Credit to 60 per cent from 50 per cent in 2011. The 50 per cent Industrial Property Tax Credit was announced in October 2008 as part of the Premier's 10-point plan to address the economic crisis.
  • Remaining emissions caused by processing, agriculture and landfills will be addressed through a 'cap and trade' system to be instituted through the Western Climate Initiative – a group of 10 member states and provinces, representing 82 million people with a collective GDP of $3.6 trillion CAD.
  • Your B.C. Government is supporting communities in their efforts to reduce emissions with $5 million to offset the carbon tax for local governments and school districts who pledge to become carbon neutral by 2012.

For more information:
B.C.’s Revenue-neutral Carbon Tax