Canadian taxpayers are footing a hefty bill for the federal carbon tax and rebate system, with administration costs totalling $283 million since its inception in 2019, according to government records unearthed by Canadian Taxpayers Federation (CTF) investigative journalist Ryan Thorpe.
By 2030, these costs are projected to soar to $796 million, raising questions about the program's cost-effectiveness and impact on taxpayers.
“Not only does the carbon tax make our gas, heating, and groceries more expensive, but taxpayers are also hit with a big bill to fund Prime Minister Justin Trudeau’s battalion of carbon tax bureaucrats,” said Franco Terrazzano, Federal Director for the CTF. “Trudeau should make life more affordable and slash the cost of the bureaucracy by scrapping the carbon tax.”
The records, obtained by Thorpe in response to an order paper question from Conservative MP John Barlow (Foothills), revealed that administering the carbon tax cost $84 million in 2023 alone, with 461 federal employees dedicated to the program last year.
From 2019 to 2022, administration costs reached $199 million, and between 2024 and 2030, an additional $513 million is expected to be spent. However, the figures do not include costs associated with the Fuel Charge Tax Credit for Farmers or the Canada Carbon Rebate for Small Businesses, meaning the true financial impact on taxpayers could be even greater.
“It’s magic math to believe the feds can raise taxes, skim hundreds-of-millions off the top to hire hundreds of new bureaucrats, and then somehow make everyone better off with rebates,” Terrazzano said.
Adding to the burden, the Parliamentary Budget Officer (PBO) reports that the carbon tax will cost the average household up to $399 more than they receive in rebates this year. The PBO, Canada’s non-partisan fiscal watchdog, also highlighted that “Canada’s own emissions are not large enough to materially impact climate change.”
The carbon tax is further compounded by the federal Goods and Services Tax (GST), which is applied on top of the levy. The PBO estimates this tax-on-tax will cost taxpayers $400 million in 2023—money that is not rebated back to Canadians.
Currently, the carbon tax adds 17 cents per litre to gasoline, 21 cents per litre to diesel, and 15 cents per cubic metre to natural gas. These costs are set to rise sharply by 2030, reaching 37 cents per litre for gasoline, 45 cents for diesel, and 32 cents for natural gas.
Sheila Gunn Reid
Chief Reporter
Sheila Gunn Reid is the Alberta Bureau Chief for Rebel News and host of the weekly The Gunn Show with Sheila Gunn Reid. She's a mother of three, conservative activist, and the author of best-selling books including Stop Notley.