Final carbon rebate arrives as fuel levy ends, leaving billions unaccounted for
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Canadian taxpayers are receiving their final Canada Carbon Rebate today (April 22 2025). The payout is being sent as the federal carbon tax on fuel (federal carbon tax levied on the carbon content of fossil fuels, particularly gasoline and diesel, at the pump) officially ended on April 1 2025.The carbon tax was designed to generate revenue for Canada 's economy.A significant portion (around 90%) of the revenue generated from the fuel tax was intended to be returned to households through the Canada Carbon Rebate.This was designed to offset the increased costs for individuals, particularly low- and middle-income families, with the government stating that most households would receive more back in rebates than they paid in the tax.As of April 1, 2025, the federal carbon tax on fuel was eliminated. This means that consumers no longer pay this additional charge at the pump.Because the fuel tax has ended, the final rebate isn't being funded by current fuel tax revenue. It's essentially a payout of previously collected funds or a direct government transfer.This "unique economic scenario" distributes money that isn't being directly recouped from the mechanism that was initially designed to fund it.The Green Party's co-Leader, Jonathan Pedneault, while acknowledging Canadians' "entitlement" to the payment, pointed out the politically sensitive timing, labeling it a potential "Liberal gift" ahead of the election.While the quarterly rebates were initially funded by carbon tax revenues, this final installment effectively operates as a government transfer, as no new fuel charges are being collected to cover it. Finance Canada has remained tight-lipped regarding the total cost of this final payout, declining repeated requests from a Canadian news outlet, CBC News, for disclosure.Despite the end of the fuel levy, a Finance Canada spokesperson justified the continued payment as an "affordability measure," stating that Canadian families, particularly those with lower incomes, were relying on this April rebate.While the overall cost of this final rebate remains undisclosed, Finance Canada has released the specific amounts eligible adults will receive across participating provinces.These range from $110 in Prince Edward Island and Nova Scotia to $228 in Alberta, with a 20 per cent rural supplement for eligible recipients.Small businesses that qualified for the Canada Carbon Rebate will still receive their reimbursements for carbon tax paid over the past year, with Finance Canada outlining plans to return $623.1 million in proceeds for the 2024-25 fuel charge year.
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The Hindu
32 minutes ago
- The Hindu
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Hindustan Times
an hour ago
- Hindustan Times
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First Post
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