A vehicle fuels up at Integra Tire gas station in Whitehorse on Jan. 24. Carbon tax came into effect July 1. (Crystal Schick/Yukon News file)

Carbon is now taxed in the Yukon

This means higher prices at the pumps, rebates and more

The Yukon now joins the rest of a Canada in a bid to cut down greenhouse gas emissions.

A federally designed carbon levy — spurred by reduction targets established during the Paris summit in 2015 — became effective on July 1. The “backstop” was a measure intended to ensure a base tax for carbon.

The federal government projects a decrease of 6.8 kilotonnes of emissions in the Yukon within the first year, Premier Sandy Silver said in January.

The study he was referencing says emissions are anticipated to drop by roughly 20 kilotonnes in 2020 and 32 kilotonnes in 2022.

Starting this week, each tonne of carbon will be taxed by $20. This number will climb annually by $10 until it hits $50 by 2022. The levy will plateau afterwards.

Critics of the system across the country have been wary of higher prices at the pump. Yukoners will pay 4.42 cents more per litre for gasoline, 5.37 cents for diesel and 3.10 cents for propane.

In 2022, residents are projected to pay an additional 11.05 cents per litre for gasoline, 13.41 cents for diesel and 7.74 cents for propane.

In the first year, it’s projected that the federal government will gather $7.8 million from the Yukon. This figure will have grown to $26 million by 2023, according to the Yukon government.

Residents

Every Yukoner who fills out a tax return will get a $43 cheque this October. A second cheque for the same amount will be sent out in April 2020.

The $86 rebate between October and April is $2 more than what the average Yukoner will spend on the carbon tax, according to the government.

Rebates would be issued four times per year starting in July 2020.

The total annual rebate for individuals living in Whitehorse will climb to $284 by 2023.

Residents outside of Whitehorse will receive a 10 per cent supplement, but that won’t start until the first full year of the program.

A family of four living in the communities would get a $1,249 rebate in 2023, according to the government. That’s $312.40 per person, including the supplement.

For comparison, the government estimates residents will pay an average of $187 in carbon tax that year.

Rebates would be issued by the Canada Revenue Agency and wired electronically or come in the mail as a cheque.

While individuals will be taxed the most, this will be offset by the rebate they receive, which is larger than other categories.

In total, by 2023, Yukoners would have paid roughly $7.6 million but get back $11.7 million, according to the government.

Businesses

Instead of receiving rebates four times annually like individuals, businesses will receive theirs as a refundable income tax credit at the end of the year.

In 2019, businesses would be taxed about $1.6 million; the rebate in this instance is roughly $1.9 million.

By 2023, when carbon pricing is at $50 per tonne of emissions, businesses would be taxed roughly $5.4 million. About $6.4 million would be rebated.

There are incentives from transitioning away from fossil fuels. For instance, $57.46 per $1,000 in assets will be tacked onto the rebate in 2023 (roughly $6.4 million) by way of a “Super Green Credit,” a program that awards businesses for investing in renewable energy sources – electric vehicles or solar panels, for example.

Federal exemptions for the Yukon include the aviation fuel and diesel-powered electricity in rural zones. National exemptions include commercial fishing and agriculture.

Quartz and placer mining

To ensure these industries remain competitive internationally, they will get 100 per cent of their carbon tax back.

Industry owners of these types are to submit receipts for purchases where the tax was applied.

Municipalities and First Nations

In 2019, First Nations would spend $40,000 on the tax, receiving double that as a rebate.

The rebates will be distributed to First Nations on Mar. 31, 2020, covering the preceding year.

Municipalities would be taxed $200,000 in 2019 and rebated $230,000.

Like First Nations, municipalities would receive their rebate, on April 1, 2020.

Subsequent payments will occur annually.

Contact Julien Gignac at julien.gignac@yukon-news.com

carbon taxYukon

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Team Yukon skip Laura Eby, left, directs her team as Team Northern Ontario skip Krysta Burns looks on at the Scotties Tournament of Hearts in Calgary on Feb. 22. (Jeff McIntosh/CP)
Team Yukon reports positive experience at Scotties

Team Yukon played their final game at the national championship in Calgary on Thursday afternoon

A sign indicating a drop-off area behind Selkirk Elementary school in Whitehorse on Feb. 25. (Haley Ritchie/Yukon News)
Parking lot proposal for Selkirk Elementary criticized

Parents and school council are raising concerns about green space and traffic woes

adsf
WYATT’S WORLD

Wyatt’s World for Feb. 26, 2021

Ken Anderson’s Sun and Moon model sculpture sits in the snow as he carves away at the real life sculpture behind Kwanlin Dün Cultural Centre for the Yukon Sourdough Rendezvous festival in Whitehorse on Feb. 21, 2018. Yukon Rendezvous weekend kicks off today with a series of outdoor, virtual and staged events. (Crystal Schick/Yukon News file)
Rendezvous snowpad, live music and fireworks this weekend

A round-up of events taking place for the 2021 Rendezvous weekend

Yukon Energy in Whitehorse on Aug. 4, 2020. The proposed Atlin Hydro Expansion project is moving closer to development with a number of milestones reached by the Tlingit Homeland Energy Limited Partnership and Yukon Energy over the last several months. (Crystal Schick/Yukon News file)
Atlin hydro project progresses

Officials reflect on milestones reached

Tom Ullyett, pictured, is the first Yukoner to receive the Louis St-Laurent Award of Excellence from the Canadian Bar Association for his work as a community builder and mentor in the territory. (Gabrielle Plonka/Yukon News)
Tom Ullyett wins lifetime achievement award from the Canadian Bar Association

Ullyett has worked in the Yukon’s justice ecosystem for 36 years as a public sector lawyer and mentor

The Blood Ties outreach van will now run seven nights a week, thanks to a boost in government funding. Logan Godin, coordinator, and Jesse Whelen, harm reduction counsellor, are seen here on May 12, 2020. (Crystal Schick/Yukon News file)
Blood Ties outreach van running seven nights a week with funding boost

The Yukon government is ramping up overdose response, considering safe supply plan

Ranj Pillai speaks to media about business relief programs in Whitehorse on April 1, 2020. The Yukon government announced Feb.25 that it will extend business support programs until September. (Crystal Schick/Yukon News)
Government extends business relief programs to September, launches new loan

“It really gives folks some help with supporting their business with cash flow.”

Whitehorse City Hall. (Joel Krahn/Yukon News file)
A look at decisions made by Whitehorse City Council this week

Bylaw amendment Whitehorse city council is moving closer with changes to a… Continue reading

Susie Rogan is a veteran musher with 14 years of racing experience and Yukon Journey organizer. (Yukon Journey Facebook)
Yukon Journey mushers begin 255-mile race

Eleven mushers are participating in the race from Pelly Crossing to Whitehorse

Legislative assembly on the last day of the fall sitting in Whitehorse on Nov. 22, 2018. As the legislature prepares to return on March 4, the three parties are continuing to finalize candidates in the territory’s 19 ridings. (Crystal Schick/Yukon News file)
Nine new candidates confirmed in Yukon ridings

It has been a busy two weeks as the parties try to firm up candidates

David Malcolm, 40, has been charged with assaulting and attempting to disarm a police officer after an incident in Whitehorse on Feb. 18. (Phil McLachlan/Capital News)
Man resists arrest, assaults officer

A Whitehorse man has been charged with assaulting and attempting to disarm… Continue reading

Yukon Energy in Whitehorse on Aug. 4, 2020. A site on Robert Service Way near the Alaska Highway has been selected as the future home of Yukon Energy’s energy storage project. (Crystal Schick/Yukon News file)
Site selected for Yukon Energy battery project

Planned to be in service by the end of 2022

Most Read