Quebec will be the first province in Canada to impose a carbon tax, which will be used to fund public transit and other green energy initiatives.
"Quebec will implement Canada's first carbon tax in October, collecting just under one cent a litre from petroleum companies in the province, which will raise about $200 million a year to pay for energy-saving initiatives such as improvements to public transit. The tax will amount to 0.8 cents on every litre of gas sold in Quebec, and 0.9 cents on each litre of diesel fuel. About 50 companies will be affected by the tax.
Oil companies will be hardest hit. They will pay about $69 million a year for gasoline, $36 million for diesel fuel, and $43 million for heating oil. Natural gas distributors will pay about $39 million, while electricity distributor Hydro-Québec will pay $4.5 million for its thermal energy plant in Tracy, Que. Natural Resources Minister Claude Béchard said Wednesday he hopes the petroleum industry will pay the tax without passing on the cost to drivers when they fill up their cars at the pump.
But Jean-Thomas Bernard, who teaches economics at Laval University, said the fate of the carbon tax is a foregone conclusion. 'It will end up being paid by the consumer.'"
FULL STORY: Quebec to collect nation's 1st carbon tax
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