Tuesday, September 23, 2008

Got GST with that carbon tax ?

Natural gas bills started arriving at homes in BC in September with a new charge -- the Campbell government’s carbon tax. Well, everyone knew it was coming. To be fair, some of the blow will be cushioned by provincial rebates and lower income taxes. But not so the federal portion. The federal portion you ask?

Since the GST’s inception, the federal government has been taxing taxes. For example, Canadians pay GST on the full pump price of gasoline, including all taxes.

Just how much are we paying on natural gas?

Between July 1 2008 and July 1 2009, natural gas customers will pay about $8 million in GST on their natural gas bills. Even if demand for natural gas remains flat, which is very unlikely as many scientists think winters will be getting colder, the carbon tax will triple by 2012 and so will the amount of GST forked over to the federal government. By 2012, the federal government will probably be collecting at least $24 million in GST.

The carbon tax will not be revenue neutral to families, may or may not be revenue neutral for the provincial government, but will certainly prove a cash cow for the federal government.

No comments:

CTF You Tube Channel

Canadian Taxpayers Federation's Fan Box