Canada’s carbon tax is increasing by 33% on April 1

Canada’s carbon tax is set to increase on April 1, 2021, from the current $30 per ton of industrial greenhouse gas emissions to $40 per ton.

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This year’s $10 per tonne hike will increase the total federal carbon tax charge for gasoline to 8.8 cents per litre.

The price increase is part of a climate plan implemented by the Trudeau government in 2018 to raise the price by $10 per ton each year until it reaches $50 per ton in 2022. 

After the price reaches $50 per ton in 2022, it will begin rising $15 per year until it maxes out at $170 per ton in 2030. 

The $170 price translates into a hike of 39.6 cents per litre of gasoline at the pump.

The plan implemented in 2018 created a national framework for a carbon pricing mechanism that would apply to regular consumers as well as industrial emitters.

The carbon tax is also levied on 21 other fossil fuels, which include natural gas used for home heating, light and heavy fuel oil, propane, and aviation fuel. 

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