P.E.I. will maintain 2019 cut on gas taxes to offset carbon price
CHARLOTTETOWN, P.E.I. — A consultant from the workplace of Premier Dennis King has confirmed the province intends to take care of a lower in provincial gasoline taxes, launched in 2019 to offset the influence of carbon pricing.
In a Nov. 29 e mail, Adam Ross, principal secretary in King’s workplace, confirmed the province is “not eradicating the three-cent subsidy on gasoline that’s at present in place.”
The choice will imply that gasoline costs will enhance by about three cents a litre in July when the federal authorities imposes its backstopped worth on carbon in P.E.I. The 2019 tax lower, which the earlier Liberal authorities of Wade MacLauchlan put in place, lowered the value of gasoline by about 3.4 cents per litre.
This provincial gasoline tax lower has been maintained since, with the province utilizing funds obtained from carbon taxes to finance it. With out it, drivers would possible see a 6.6-cent per litre enhance within the worth of gasoline in July 2023 versus a 3.3-cent per litre enhance.
However the provincially financed gasoline tax lower will imply a success for presidency coffers. Between April 2019 and April 2021, the province spent $23.8 million of the $35.9 million of carbon levy income it obtained to compensate for the discount within the provincial gasoline tax.
The federal backstop will imply that the majority the income from the steadily growing carbon levy will probably be returned to households within the type of rebate cheques. The typical single particular person will obtain quarterly cheques of $120 whereas the common household of 4 will obtain a $240 cheque as of July 2023.
The federal authorities has argued growing the value of carbon will produce a “worth sign” that encourages shoppers to pursue low-emitting actions, similar to taking transit extra usually.
The King authorities has maintained that the province stays reliant on fossil fuels for house heating and that rural transit options to driving are usually not but obtainable for many Islanders.
A consultant of the federal Division of Surroundings and Local weather Change Canada raised no points with the province’s upkeep of the 2019 gasoline tax lower.
“The federal authorities doesn’t have the jurisdiction to impose restrictions on provincial taxation coverage, and due to this fact provinces can set their insurance policies as they need,” mentioned Oliver Anderson, director of communications with ECCC in an e mail to SaltWire Community on Nov. 30.
Stu Neatby is a political reporter with the SaltWire Community in Prince Edward Island. He could be reached by e mail at [email protected] and adopted on Twitter @stu_neatby.
