The new carbon levy is now in effect in Alberta, and while prices are going up, there are breaks for some.
The first place people will see the effects are in the prices of gas, diesel and natural gas.
Experts say the carbon tax means the average household will pay about $200 more to heat their homes and fill their cars and about $150 a year for other goods, such as groceries.
“The average rebate they will receive is about $300 per year and the average costs they will face on carbon are between $250 and $300, so the size of the rebates are actually pretty well calibrated to what we expect both the direct and indirect costs of the carbon tax to be,” said Trevor Tombe, University of Calgary economics professor.
There will be rebates to offset the higher costs. Low and medium-income earners will get a direct deposit or a cheque as early as Thursday and it will automatically come to those eligible.
Single adults will get $200, a spouse will get $100 and kids under 18 will get $30 dollars each.
“Full rebates will be provided to single Albertans who earn $47,500 or less and couples and families who earn $95,000 or less,” said Shannon Phillips, Climate Change Minister.
The government says about 60 per cent of Albertans will get the full rebate and an additional six per cent of people will get partial help, but the opposition party disagrees.
“It is a rather typical move on a socialist government to tax its businesses into insolvency and its people into poverty and offer us back a crumb or two of our own money and expect us to somehow be grateful,” said Don MacIntyre, Wildrose. “Well, we're not.”
Minister Phillips says the opposition is using scare tactics to oppose the levy, but since the New Year, the average price of gasoline in Alberta has gone up eight cents per litre, and other businesses are raising their prices as well.
