Economists predict the federal government could rake in hundreds of millions of dollars from Alberta and British Columbia’s carbon levies and the Wildrose Party is not happy about that.
The federal government will take in the money from the GST. Alberta’s opposition calls it “a tax on a tax”, but provincial Finance Minister Joe Ceci said that is the way the GST has almost always worked when in conjunction with other Alberta taxes on things like fuel.
“This is not changed in terms of carbon pricing – the levy on top of fuel. That’s always the way that’s been delivered. It’s a federal excise tax,” said Ceci.
When it comes to the opposition taking issue with the federal government taking in tax money from the carbon levy, Ceci thinks those two party leaders had their chance to act at the federal level.
“When the leader of the opposition was in Ottawa and when the new leader of the third party were in Ottawa they had the opportunity to do something about this, but they didn’t, so it’s kind of rich to hear them both complain that the carbon levy is responsible for something that they had the opportunity to correct when they were there.”
Estimates from the Canada Revenue Agency show the federal gains from Canada’s only two carbon levied provinces are $130 million in 2017 and $150 million in 2018.