Canada Carbon Tax Increase 2024

Last Updated On 19 June 2024, 11:51 AM EDT (Toronto Time)

The Canada Carbon Pricing Plan will increase from $65 per tonne to $80 per tonne effective April 1, adding to the rise in gas prices.

This increase of $15 per tonne will continue until it reaches $170 per tonne by 20230. The current Canada carbon pricing plan is $65 a tonne.

Previously known as the climate action incentive payment, the Canada Carbon Rebate is a component of the government’s carbon pricing scheme.

Quarterly tax-free payments are sent to qualified Canadians, with the next payment scheduled for April 15, 2024, under a program that the federal government rebranded in February 2024.

Only the Northwest Territories, Quebec, and British Columbia have established their own carbon pricing schemes; federal carbon pricing and rebates are not applicable to them.

Experts anticipate that the April 1 raise will add around three cents to the cost of gasoline at the pumps.

Rebranding of Climate Action Incentive Payment (CAIP)

On February 14, the Department of Finance announced new, higher Carbon Tax Rebate 2024 payments, rebranding the previously known Climate Action Incentive Payment (CAIP).

The agency also formally announced the CCR 2024 payment dates and amounts based on province of residence.

According to the Finance Ministry, the name has been changed to the Canada Carbon Rebate to explain its purpose and make the meaning and relationship with the carbon pricing plan more accessible to Canadians.

In provinces where the federal fuel levy applies, a family of four can receive up to $1,800 from the basic CCR in 2024–25.

Carbon pricing is currently in force in Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador.

Residents in these provinces will receive the first of four quarterly CCR payments in April 2024, with the remaining installments slated for July 2024, October 2024, and January 2025.

How much do Canadians get as a carbon rebate?

Beginning in April, a family of four can get a CCR payment of up to:

Alberta: $1,800 ($450 quarterly);

Manitoba: $1,200 ($300 quarterly);

Ontario: $1,120 ($280 quarterly);

Saskatchewan: $1,504 ($376 quarterly);

New Brunswick: $760 ($190 quarterly);

Nova Scotia: $824 ($206 quarterly);

Prince Edward Island: $880 ($220 quarterly); and

Newfoundland and Labrador: $1,192 ($298 quarterly).

Beginning 2024–25, rural Canadians will get a 20% boost in the base Canada Carbon Rebate in recognition of their higher energy usage and limited access to cleaner transportation options.

Opposition of Canada Carbon Pricing

The federal Conservatives have long denounced carbon pricing, with Conservative Party Leader Pierre Poilievre threatening to repeal it if his party wins power in the next election.

Provincial leaders, including Newfoundland and Labrador Liberal Premier Andrew Furey, are calling for a halt over affordability concerns.

In a letter to Trudeau, Furey stated that, while his administration is “deeply invested” in environmental sustainability, the projected rise “is causing understandable worry as people consider how they will manage the mounting financial strain.”

Ontario Progressive Conservative Premier Doug Ford, Alberta United Conservative Premier Danielle Smith, and Saskatchewan Premier Scott Moe, who leads the conservative Saskatchewan Party, all endorsed Furey’s appeal by publishing the letter to their own X accounts on Tuesday.

Manitoba’s NDP Premier, Wab Kinew, has also stated that he would like to reconsider how federal carbon pricing is imposed in the province, although any changes might take up to three years to implement.

What are the Canada carbon rebate (CCR) payment dates?

The CCR payment is made quarterly, with the following issuance dates:

April 15, 2024
July 15, 2024
October 15, 2024
January 15, 2025

Gagandeep Kaur Sekhon

Gagandeep Kaur Sekhon moved to Canada in 2010 on a study visa. She navigated through the ups and downs of her student life and gained her permanent residency in 2015. Today, she is a proud Canadian citizen residing in Calgary, Alberta. She is mother of 2 beautiful daughters and making her difference through writing and guidance at INC – Immigration News Canada.