Carbon tax, climate action taxcredit both rise July 1

VICTORIA – British Columbia’s Low Income Climate Action Tax Credit increases by 10 per cent on July 1 to help low income families and individuals offset the increasing rate of the revenue-neutral carbon tax, Finance Minister Kevin Falcon announced today. 

Effective July 1, 2011, the carbon tax on gasoline rises by 1.11 cents per litre to 5.56 cents per litre. Other fuels see a similar increase.

Government provides the Low Income Climate Action Tax Credit, paid quarterly, to ensure low- and modest-income British Columbians are compensated for the tax they pay. The 10-per-cent increase brings the payment to $115.50 per adult and $34.50 per child annually. 

Every dollar generated by the revenue-neutral carbon tax is returned to British Columbians through tax cuts. For the 2011/12 fiscal year, the tax cuts are expected to return $191 million more to taxpayers than the amount of carbon tax paid. In addition to the Low Income Climate Action Tax Credit, other measures to mitigate the carbon tax for families include the new up-to-$200 Northern and Rural Homeowner benefit and the ongoing benefit of the five-per-cent reduction in the first two personal income bracket rates introduced in 2008. 

Another 25% Increase July 1, 2011

Don Quixote Note: You can find most of the news about the Carbon Tax by clicking on the Carbon Tax Category at bottom of post. The HST is only charged at a 5% rate on your Terasen Gas Bill but is still applied to the Carbon Tax portion of your bill. (A tax on a tax!)

Old 2008 Cartoon