British Columbia’s Carbon Tax
British Columbia’s Carbon Tax: With an aim to lower harmful carbon emissions in favour of a healthy environment and sustainable wealth creation for future generations, the British Columbia Carbon Tax of 2008 has led to the lowest personal income tax rate in Canada as well as falling per capita fuel consumption each year since its introduction.
Designed to be revenue neutral, all tax revenue raised by increasing the cost of carbon consumption is offset by reductions to other taxes, such as income. In addition, British Columbia’s green tax shift includes measures to assist vulnerable households and communities in dealing with the associated transition costs of moving away from a carbon-based economy.
With a growing interest in such fiscal measures, momentum towards carbon pricing is growing across Canada in contrast to the national policy, with British Columbia’s carbon tax frequently cited as a model to replicate worldwide.