Recently, the Canadian federal government released for comment a draft of the Greenhouse Gas Pollution Pricing Act. Such Act would establish federal tax rates for various fossil fuels including gasoline, diesel, propane and natural gas. These taxes would be paid by producers, distributors and importers based on the type of fuel, with the tax increasing yearly. The Act would also implement an output-based pricing system based on actual emissions. The price for greenhouse gas emissions is set to start at $10 per ton beginning January 1, 2019 and increasing $10 per ton each year until it reaches $50 per ton in 2023. The system established by the Act would apply in provinces and territories that either request its application or those that fail to implement a system that meets federal standards by September 1, 2018. If approved, the Canadian federal government intends to implement the Act on January 1, 2019 in any provinces that have not created systems that meet federal standards. For more information, see https://www.fin.gc.ca/drleg-apl/2018/ggpp-tpcges-eng.asp.
InsightView all Firm insight
08 March 2018