British Columbia Proposes Broad Carbon Tax

On February 19, the provincial government of British Columbia announced, as part of its 2008 budget, that it plans to introduce legislation that would impose a broad tax on the purchase or use in B.C. of gasoline, diesel fuel, natural gas, home heating fuel, propane, coal and possibly other fossil fuels. According to the government, this new tax, which would take effect on July 1, 2008, would be revenue neutral and among the broadest and most comprehensive in the world.

The tax would be phased in, starting at a rate of $10 per tonne of carbon dioxide equivalent (CO2e) emissions released from the burning of each particular fossil fuel. This initial rate would translate to a tax of $0.0241 per litre of gasoline purchased or used in B.C.; $0.0276 per litre of diesel fuel; $0.4988 per gigajoule of natural gas; $0.0276 per litre of heating fuel oil; $20.79 per tonne of Canadian bituminous coal; and $17.72 per