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QUESTION PERIOD — National Revenue

Carbon Tax

June 10, 2019


Hon. Yonah Martin (Deputy Leader of the Opposition) [ - ]

Honourable senators, my question is also for the Government Leader in the Senate.

On the weekend, the Canada Revenue Agency revealed that the average rebates provided for the Prime Minister’s carbon tax is about one third less than what this government promised. For example, here in the province of Ontario the government said the average rebate would be $307. Instead, as of June 3, the average rebate was $203.

We recently learned that the government’s awareness campaign for the carbon tax cost taxpayers about $3.4 million. As well, the Parliamentary Budget Officer has found between now and fiscal year 2021-22 the administration of the carbon tax will cost taxpayers $174.5 million.

Senator, some large industrial polluters have received a special exemption on the carbon tax, all while families are forced to pay and the rebate amount is less than they were promised. How is this tax fairness?

Hon. Peter Harder (Government Representative in the Senate)

I thank the honourable senator for her question. In adopting a price on pollution, the Parliament of Canada determined a system in which those provinces that have plans consistent with the national framework, their plans are respected. The government is also indicating that the tax rebates which are envisaged are effective immediately and, indeed, a number of Canadians have applied for and been granted that rebate.

As to the particular breakdown by province, I’ll seek information and report back.

Senator Martin [ - ]

Consistently across Canada, I think the rebates are lower. It wasn’t as advertised is what I understand. As I’ve mentioned before, carbon taxes and the lack of pipeline capacity have led to high gas prices across Canada, including in my province of British Columbia. Recently, when the new provincial government in Alberta repealed the province’s carbon tax, gas prices came down.

Senator, does your government recognize that its carbon tax and the lower than expected rebates are hurting Canadian families and small businesses already struggling to make ends meet?

I thank the honourable senator for her question. It’s the question that the honourable senator asked last week, in which I reminded the honourable senator that the gas pricing across the country has a number of factors that determine the price of gas, not only actions by the Government of Canada in terms of taxation of gasoline but also provinces and public policies that are in place by other orders of government.

The volatility of the gasoline pricing regime is one that successive governments have dealt with. It would be, I think, rather incongruous to suggest that the lack of a pipeline which has failed to be built over how many decades has contributed to gasoline price spikes in B.C.

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