Saskatchewan to see federal carbon tax kick in

The federal government’s carbon tax takes effect on Monday in Saskatchewan.

People will notice an immediate impact at gas pumps, where gas prices will go up 4.4 cents per litre.

“That means that everything that we use or consume will be affected adversely. It will drive up the cost of just about everything,” said Dan McTeague, a petroleum analyst for Gas Buddy.

Power and energy bills will also be going up as the tax applies to electricity generation and natural gas transmission pipelines — two areas that were exempt from the province’s climate change strategy.

Even with a rate reduction for SaskEnergy, the province says the carbon tax will add about $109 to the average bill this year.

Residential customers with SaskPower can expect to pay $18 more this year, too.

The cost of fuels is expected to continue rising, as the tax increases from $20 per tonne of carbon dioxide (CO2) in 2019 to $50 per tonne in 2022.

Farm fuels will be exempt but not those used by commercial trucks and trains that move agricultural goods.

The carbon tax will still be levied pending the Court of Appeal’s decision on Saskatchewan’s constitutional challenge of it.

On the eve of implementation, some in Regina saw it as a needed step to limit damage to the environment.

“We have to do something to stop putting pollutants into the air. I don’t know what the option would be,” said Don Henricksen. “Yes, nobody likes a tax … but we have to do something.”

While Guylaine Deschampault is worried about the added cost to heat her house, she agrees with Henricksen.

“We have done some things like get a smaller vehicle to offset the cost but it’s always good to think about doing more,” she said.

Saskatchewan is one of four provinces that did not sign onto the federal government’s climate change plan, along with Manitoba, Ontario and New Brunswick.

The federal government has pledged to return most of the money raised back to the provinces where it was collected, in the form of rebates. People will have to claim the Climate Action Incentive payment on their tax returns.

In Saskatchewan, households will pay an average of $403 of carbon tax in 2019. The average rebate will be $598.

Feeling of uncertainty among businesses

Another portion of the money raised is supposed to go towards organizations like schools, hospitals, municipalities, non-profits and small- and medium-sized businesses.

When it comes to businesses, many say they don’t know how to apply for the exemptions promised to them.

“Business owners are just left with more questions than answers and they’re all frantically trying to get answers from the CRA at the 11th hour,” said Marilyn Braun-Pollon, vice-president of the Canadian Federation of Independent Business.

Many also are unsure of what to do about it, besides passing the cost onto consumers.

“There’s only so much you can do. We need to keep the ovens going. We need to keep the place lit. We do everything we can — we go to LED lights, we keep our energy use as low as we can, but the demand is pretty high for restaurants,” said Regina restaurant owner Tim Rogers last month.

“The options are: See how it impacts the bottom line and make a decision. Do we need to adjust our menu prices? We hope we don’t have to do that. Every time you raise prices, you lose customers and that’s not something we like to do either.”