Amendments to increase tax on carbon-emitting products introduced17 March 2021
FREDERICTON (GNB) – Amendments to the Gasoline and Motive Fuel Tax Act were introduced today that would increase the tax on carbon-emitting products by $10 per tonne as required by federal backstop.
“There is no doubt that among New Brunswickers, and for our government, climate change is real and worthy of action,” said Finance and Treasury Board Minister Steeves. “We take it extremely seriously and we are working every day to ensure we lessen our environmental footprint. Today’s announcement will generate an additional $40 million in revenue, all of which will be invested back into the New Brunswick economy.”
Last year, the government implemented a made-in-New Brunswick carbon tax plan to replace the federally-imposed carbon tax. It is designed to allow the government to decide how best to return that revenue back to New Brunswickers.
The made-in-New Brunswick approach applies to 20 separate fuels.
For 2021-22, to meet the requirements of the federal carbon backstop, the province’s carbon tax will increase from $30 per tonne to $40 per tonne, effective April 1, 2021.
This means that:
- the carbon tax on gasoline will increase by 2.21 cents per litre from 6.63 cents per litre to 8.84 cents per litre; and
- the carbon tax on diesel will increase by 2.68 cents per litre from 8.05 cents per litre to 10.73 cents per litre.
“Addressing climate change is a shared responsibility, and we all have a role to play,” said Steeves. “These amendments will allow New Brunswick to take another important step toward addressing its effects.”