British Columbia To Become World's First Region To Collect Carbon Tax

British Columbia, Canada (AHN) - British Columbia Finance Minister Carole Taylor filed with the provincial parliament Monday the Carbon Tax Act 2008. The measure seeks to cut the province's greenhouse gases by 33 percent by 2020.

At the same time it seeks to raise funds for British Columbia through the collection of a carbon tax of 2.5 cents per liter for gasoline and 2.75 cents per liter for diesel starting July 1. By 2012 the carbon tax is scheduled to rise to about 7.25 cents per liter.

Taylor, quoted by the Canadian Press, said, "Bill 37 introduces a ground-breaking, revenue-neutral carbon tax that will encourage all British Columbian families and businesses to lower their carbon footprint."

In the first three years of collection, the carbon tax expects to raise $1.849 billion, which will be channeled back to residents. "It will require the minister of finance... to ensure that all of the dollars that come in from a carbon tax are returned to the people and the businesses of B.C. through tax cuts," Taylor said, quoted by the Canadian Press.

Under the bill, low-income residents of British Columbia would receive a quarterly tax credit sourced from the carbon tax collection.

With environment issues emerging as a popular campaign platform, speculations are rife that the Liberal Party might ride on the issue as the June 16 election approaches. Liberal leader Stephen Dione had previously ditched a carbon tax proposal.

In a Toronto Star column, writer Chantal Hebert's unsolicited advice to the Liberals was, "For the Liberals, a carbon tax may have become the price of admission to being taken seriously on climate change. The sense that it must be part of any credible climate change plan now extends well beyond environmental activists."