Carbon tax rebates make welcome appearance

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This article was published 15/07/2022 (1189 days ago), so information in it may no longer be current.

OTTAWA — Manitobans might have noticed a surprise deposit in their bank accounts Friday, as the federal government tries to make the carbon tax rebate more visible.

What’s the payment?

The Liberals call the program the Climate Action Incentive, and it comes from the gradually increasing levy that Ottawa collects on fuels.

By law, Ottawa remits all revenue from the carbon tax to the source province, in full. Some of it pays for green retrofits in schools and public buildings, but the vast majority arrives in an income-tax credit.

Ottawa imposed the levy on Manitoba, Saskatchewan, Alberta and Ontario, after they failed to implement a stringent carbon plan, a practice the Supreme Court deemed constitutional.

Is this rebate new?

No. Manitobans have been getting the payments since shortly after the tax started being applied to the province in 2018.

The money used to be buried in annual income taxes, offsetting any money owed to the government or adding to a rebate.

The Liberals have changed the system to have money put in Canada Revenue Agency accounts every quarter, though Friday’s payment accounts for the past six months. The next payments will arrive Oct. 15 and Jan. 15 in half the amounts paid out Friday.

How much am I getting?

An adult living alone in Winnipeg’s metropolitan area should be getting $208, including residents of St. Francois Xavier, Springfield and Brokenhead.

Single Manitobans living outside that area get $228.80 as part of a 10 per cent increase for rural communities.

A family of two adults and four kids will get $832 in Winnipeg and $915.20 outside the city.

An adult living with their parents can expect $52 to $57.20.

Did I get the payment?

The best way to tell is to log in to your CRA account, and go to the benefits tab.

If you have direct deposit, your bank account could have a payment titled “CANADA FED” or “Federal Payment.”

The CRA warns the payment may take as long as 10 days to come through, asking people not to call unless the money isn’t listed by July 25. The agency said Friday it needed more time to explain that lag.

People who don’t file their taxes generally can’t get the payment, and those living in another province don’t qualify.

Is this a net plus for most people?

That’s disputed. The idea behind the plan is that people who consume more carbon will spend more than the amount of tax that is equally remitted to everyone, so someone who takes the bus would make more than the driver of a gas-guzzling SUV.

The Parliamentary Budget Office confirmed in March that most households indeed get back more in tax rebates than the added costs they face.

However, the analysis weighs economic costs, such as the loss of employment and investment income due to the federal climate plan, and found the average Manitoba household would have a net loss in 2030 of $1,145 after rebates.

Environmentalists panned that report for not accounting for green jobs that are still being created.

dylan.robertson@freepress.mb.ca