Canada to Implement Carbon Tax

October 5, 2016 Taxation in Canada

Carbon taxOTTAWA – In a surprise move, Canada has announced that it will implement a carbon tax of CAD 10 per tonne within 2 years.

In a speech on October 4th the Prime Minister of Canada Justin Trudeau announced that by the year 2018 each province in the country will be required to implement a carbon tax.

The Prime Minister stated that each province will be required to charge carbon emitters a tax of at least CAD 10 per tonne of emissions, or to implement a cap-and-trade system which would have the same effect as a carbon tax.

Any states which will fail to implement the tax will see a generic carbon tax applied by the federal government, with a rate set at CAD 10 per tonne, to be raised by CAD 10 per tonne per year, to be capped at CAD 50 per tonne.

Explaining the need for the tax, the Prime Minister said “…there is no hiding from climate change… It is real and it is everywhere. We cannot undo the last 10 years of inaction. What we can do is make a real and honest effort – today and every day – to protect the health of our environment, and with it, the health of all Canadians.”