Carbon tax an attempt to offset other reforms, say critics
The provincial government's proposed carbon tax is more of a tax grab than an effort to reduce greenhouse gases, says the New Brunswick Conservation Council.
The New Brunswick government released a discussion paper Wednesday on proposed tax reforms that included establishing a carbon tax.
Details haven't yet been released on how the tax would work, but there are suggestions it would be modeled after British Columbia's, which is based on a rate of $10 per tonne of greenhouse gas emissions. Anyone who drives a car or boat, and all corporations that transports goods or uses fuel in industrial processes, are taxed, with the charges currently amounting to an extra 2.4 cents per litre of gas.
According to the New Brunswick tax discussion paper, a carbon tax would "encourage energy conservation and the use of cleaner fuels."
The tax would discourage the consumption of fuel and would lead to fewer emissions in the province, said Finance Minister Victor Boudreau.
The tax alone would help the government finance its climate change action plan, said Boudreau.
"Government obviously needs the revenues to make sure that that action plan can be implemented and that those targets can be met," said the minister.
David Coon, an environmentalist with the conservation council said, however, that he believes the government is introducing the concept of a carbon tax to offset some of the other tax reforms it is proposing.
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"I asked the minister what it would achieve in emission reduction. He said 'We have no idea.' I said, 'How much would it raise?' [The minister said] '$100 million.' So you know what the purpose of this is," Coon said.
The tax reform discussion paper also includes cutting personal and corporate income taxes by as much as $500 million annually and increasing the Harmonized Sales Tax by two percentage points to 15 per cent from 13 per cent.
Coon said if the province really wants to reduce its emissions it should implement a cap-and-trade system, which was proposed by Ontario and Quebec premiers on Monday.
The trading system would put a cap on greenhouse gas emission and big polluters that exceed the limits would be able to buy credits from companies that are under the cap.
Dave Plante, vice-president for the Canadian Manufacturers and Exporters' New Brunswick division, said big business would also prefer to see a cap-and-trade system in the province.
But business would be able to accept the proposed carbon tax, Plante said.