Canadian Taxpayers Federation slams double tax hike in Alberta

The Canadian Taxpayers Federation said it is disappointed at what it calls a “double whammy” of tax increases in Alberta that are scheduled to take effect on Monday, saying it will make life more unaffordable for most residents.

Both the federal carbon tax and the provincial gas tax are scheduled to be increased on April 1.

Right now, the carbon pricing plan is set at $65 a tonne. As of April 1, it will rise to $80 a tonne, and will continue to rise annually by $15 until it reaches $170 a tonne by 2030. At the pumps, the hike on Monday will add roughly three cents per litre to the cost of gas.

The federal government said annual increases make up the overall pricing scheme. Carbon tax increases are planned until at least 2030.

“A province or territory can decide to voluntarily adopt the federal pricing system,” the government said on its website.

“If a province or territory decides not to price carbon pollution or proposes a system that does not meet the minimum national stringency standards, that jurisdiction is subject to the federal pricing system to ensure there is an appropriate price on carbon pollution across Canada.”

The Alberta government also plans to increase its provincial gas tax on April 1 by four cents, bringing tax increases to a total of 13 cents per litre. But many Albertans said they felt the pinch less than a week before the increase was set to be implemented, with some gas stations in Edmonton raising prices to 151.9 last Tuesday.

“Revenue from the provincial fuel tax helps fund the programs, services and infrastructure Albertans rely on every day. In 2024-25, fuel tax revenue is forecast at $1.4 billion, which will help fund everything from better roads to improved health care and more supports in the classroom to continue to meet the needs of our growing population,” said Alberta Finance Minister Nate Horner earlier this month.

Kris Sims, Alberta director for the Canadian Taxpayers Federation, said the federal carbon tax will have a “layering effect” in driving up costs for Albertans.

“Even if you manage to have a downtown urban setting sort of a life where you only ride your bike, or you only walk to farmers markets, you are still hit hard by the carbon tax. And that is because the carbon tax applies to diesel at 21 cents extra per litre for diesel. That means the cost of pretty much everything we eat and use goes up because pretty much everything we eat and use is delivered to us on a truck,” Sims told Global News on Sunday.

“So all those trucks you see on the highways, all those goods that you see in the stores, those things are essential parts of our economy. And so every time you purchase something, whether it be food or supplies, chances are it’s been dinged by the carbon tax several times.”

It’s not just grocery bills that will rise for Albertans, according to Sims. Heating homes for the winter will also cost more this year, she said.

“So just for home heating, natural gas use on average here in Alberta, based on this carbon tax, is going to cost (Albertans) more than $400 this year for home heating. So that’s an awful lot of money,” she said.

Sims said while the tax hikes weren’t a surprise, they are ill-timed because of affordability issues across the province. According to her, the average Albertan will experience a net loss of $900 this year.

A report by Food Banks Canada published in September 2023 suggests 49.4 per cent of those surveyed said they feel worse off than they did in 2022. The number of people who cite low wages and difficulty accessing employment opportunities in their community is also six percentage points higher than the national average, the report reads.

The report also suggests there has been a 73 per cent increase in food bank usage between 2019 and 2022.

“People are just broke, they can’t afford this, they’re tapped out,” Sims said. “That’s also why you see in polls that around 70 per cent of Canadians are wanting this carbon tax either stopped or scrapped.”

–With files from Aaron D’Andrea, Emily Mertz and Jennifer Ivanov, Global News.

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