Just in case you thought that Canada is on Abbott’s wavelength – that may be the case in terms of Canada’s current prime minister and some of its actions on the federal level.
But let me show you this, straight from the website of the Ministry of Finance of the Canadian province of British Columbia. It is actually very similar to what Australia currently has, with the proceeds from its tax given back to families, pensioners and the clean energy fund, among others.
By the way, the British Columbian government is of Liberal/Conservative flavour.
Overview of the revenue-neutral carbon tax
B.C. continues to be a leader in climate action by having a carbon tax.
The revenue-neutral carbon tax was implemented on July 1, 2008, and the final scheduled increase took effect on July 1, 2012.
The initial tax rate was relatively low and has increased gradually to allow families and businesses time to reduce their emissions. The tax is also intentionally broadly based and paid by all those who consume fossil fuels in the province.
The tax puts a price on carbon to
- encourage individuals, businesses, industry and others to use less fossil fuel and reduce their greenhouse gas emissions;
- send a consistent price signal;
- ensure those who produce emissions pay for them; and
- make clean energy alternatives more attractive.
The carbon tax is revenue neutral, meaning every dollar generated by the tax is returned to British Columbians through reductions in other taxes.