B.C. says goodbye to consumer carbon tax

With the removal of the consumer carbon tax in British Columbia, people will experience instant savings.

Submitted photo from Shaun Kelly

With the federal government eliminating the consumer carbon tax, the B.C. government is not only canceling the planned tax increase but also introducing legislation on Monday, March 31, 2025, to abolish the tax entirely, effective April 1, 2025.

Fuel sellers and natural gas retailers have been notified by the province ahead of time (April 1, 2025), allowing them time to take action and stop collecting this tax from the consumers in British Columbia.

The B.C. government acknowledged that removing the tax involves adjustments, but it expects fuel sellers and natural gas retailers to take all necessary steps to ensure customers are not charged the carbon tax on their purchases.

British Columbia remains committed to combating climate change by providing affordable sustainable options for British Columbians and promoting innovation within industries.

“British Columbians are doing everything they can to reduce their emissions. But people shouldn’t have to choose between climate action and being able to afford their bills,” said Premier David Eby.

“That’s why we are eliminating the consumer carbon tax, which has become divisive at a time we need to be united. We will help people with costs and fight climate change by ensuring big polluters continue to pay, encouraging industry to innovate and giving British Columbians affordable options to make sustainable choices.”

As the government eliminates the carbon tax for consumers, the Province of B.C. will continue to ensure that major industrial polluters contribute their fair share through the output-based carbon pricing system. This system holds large emitters accountable while providing cost-effective solutions for reducing emissions.

“While we eliminate the consumer carbon tax, we will continue to ensure big industrial polluters pay their fair share by maintaining an effective price on carbon for large emitters. Our goal is to incentivize industry to adopt lower-carbon technologies while maintaining their competitiveness,” said Eby.

Encouraging industries to adopt low-carbon technologies while remaining competitive is a key priority for the province according to the release.

“The carbon tax has been an important tool in B.C. for over a decade and half, but it has become too politically divisive and a distraction from the important issues we are tackling,” said Brenda Bailey, Minister of Finance. “While this is a significant shift for our province, we will offset the impact while focusing on growing the economy during these challenging economic times.”

According to a media release, eliminating the tax and credit is expected to have a financial impact of approximately $1.99 billion in the upcoming fiscal year.

To mitigate the effect on B.C.’s budget, the province will restructure programs funded by carbon tax revenue while continuing to support residents in reaching climate goals.

“We remain committed to driving down emissions while making life more affordable,” said Adrian Dix, Minister of Energy and Climate Solutions. “We are continuing to invest in practical solutions, such as home heat pump rebates for those who need them most and energy-efficiency upgrades, so people can lower their energy costs and reduce emissions without bearing an extra financial burden.”

B.C.'s carbon tax will be removed on the same day that the federal carbon pricing requirement ends.