One of the issues that recently came to light in Ottawa is the cost of the new clean fuel standard, which is basically, a second carbon tax.
This is at a time when inflation and interest rates are still high and families and small business finances are still squeezed.
According to an analysis by the office of the non-partisan Parliamentary Budget Officer (PBO), the second carbon tax is estimated to cost the average Canadian household an additional $573 per year. That is without any rebates, and with families in some provinces facing costs as high as $1,157.
The PBO’s past analysis showed a majority of Canadians already are further behind, net any rebates they may get, based on the first carbon tax.
The PBO reports the combined impact of both carbon taxes will result in an additional 61 cents per litre of gasoline once fully in effect. The first carbon tax will cost 41 cents per litre, the second 17 cents per litre, and with three cent per litre GST added on, it will add up to the 61 cents per litre. The GST on these carbon taxes is nothing more than a tax on a tax.
This will also significantly affect the cost of anything shipped—whether it be food, medicine, home appliances, construction supplies or anything else we buy.
The PBO also confirmed this tax will shrink our economy with predictions British Columbia will see a GDP contraction because of the carbon tax policies. The additional costs associated with carbon taxes hinder economic growth and competitiveness as a trading nation.
These policies come at a time when Canadians are struggling with a cost-of-living crisis, and a reported one in five people are skipping meals due to 40-year high inflation.
I have heard from many members of our community who are worried the additional costs will significantly affect the affordability of gas, heat and groceries, further straining household budgets. Local food bank use is up more than 30% already.
Despite previously claiming the PBO is a non-partisan and trustworthy source, the environment and climate change minister has disputed the findings, saying it is an “incomplete analysis”.
Conservatives are committed to common sense policies by eliminating the carbon taxes and bringing home affordability for Canadians. It is important we protect the environment through technological advancements and innovation, reduce global GHG emissions through LNG exports, incentivizing carbon capture and storage and speeding up approval processes for tidal energy, nuclear and hydro.
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Tracy Gray is the Conservative MP for Kelowna-Lake Country.
This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.