Manitobans will learn details of new carbon tax Tuesday

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This article was published 21/10/2018 (2211 days ago), so information in it may no longer be current.

Manitobans will soon learn how a federal carbon tax will affect them, now that the Progressive Conservative government has abandoned its own levy.

Ottawa will announce on Tuesday how Canadians will be compensated for the upcoming tax.

Prime Minister Justin Trudeau and Environment Minister Catherine McKenna will reveal details in Toronto, while Jim Carr, minister of International Trade Diversification, will brief Manitobans at a news conference at the University of Winnipeg.

Earlier this month, Premier Brian Pallister surprised observers when he announced he was abandoning the province’s year-old plan to institute a $25-a-tonne flat carbon tax, which would have taken effect Dec. 1. He said the decision came after he realized the federal government would force Manitoba to impose a higher tax in subsequent years.

Trudeau and his ministers are expected Tuesday to make announcements in all provinces that lack a plan to put a price on carbon.

It’s anticipated that Manitobans will face a $20 a tonne levy beginning Jan. 1. Ottawa is also expected to announce a rebate plan, which could involve the federal government cutting cheques to individual Manitobans. Ottawa has promised that all carbon taxes collected in any province will be returned to that province.

By abandoning its carbon tax, the Pallister government appears to have given up control over how the rebates will roll out. The province had said it would use the money to lower Manitobans’ provincial income taxes, beginning in the new year, and to help pay for a long-promised PST cut. The income tax cut has been postponed, while the PST promise remains on the table, Pallister has said.

On Monday, the premier said he remains concerned that Ottawa plans to increase the carbon tax to $50 a tonne in the next several years. He said he believes that Manitobans are best positioned to decide how to spend carbon tax revenues.

He also reiterated that Manitoba is considering taking the feds to court over its carbon tax. Saskatchewan and Ontario have already vowed court action.

“I feel that we have the best case to make if this ultimately has to go to court — of any of the Canadian provinces — because of the plan we have outlined,” he said. “We’ve set up the best defence against the federal government taking these actions of any province.”

Liberal Leader Dougald Lamont said by abandoning his proposed provincial carbon tax, Pallister “took his hands off the wheel,” and lost control over how rebates will be paid to Manitoba.

NDP Leader Wab Kinew said he hoped that lower- and average-income Manitobans would come out ahead on the carbon tax, while major polluters paid the price for high emissions. He said he also hoped there would be incentive programs for Manitobans to reduce their carbon emissions, be it help for acquiring a low-emission vehicle, adopting geothermal heating or some other initiative.

— with files from The Canadian Press

larry.kusch@freepress.mb.ca