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Canada’s Carbon Tax Increases April 1, Despite Economic Downturn

Gas Prices In British Columbia

Photo: Mehluli Hikwa / Unsplash

The federal carbon tax is increasing by 50%, despite the economic downturn due to COVID-19.

While about a million Canadians have applied for Employment Insurance and are losing their jobs, the carbon tax increase is going ahead as planned.

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That means, as of April 1st,  the price will rise from $20 per tonne to $30 per tonne. The plan is to raise the price by $10 per tonne each year until 2022.

So, consumers will pay an extra 2.5 cents per litre of gas at the pumps.

When asked earlier if the prices would go up, Prime Minister Justin Trudeau did not give a yes or no answer.

“Our plan on pricing pollution puts more money upfront into people’s pockets than they would pay with the new price on pollution,” he said. “We’re going to continue to focus on putting more money in people’s pockets to support them right across the country.”

The price of gas has gone down in recent weeks, however, reaching as low as 99 cents per litre in some B.C. spots, last month.

For more national news, head to our News section.

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