The Manitoba government plans to impose a carbon tax of C$25/t (around US$19.5/t) starting from 2018 onwards and that will remain at that rate through 2022. The Federal government welcomed the decision as a big step forward but also warned Manitoba that it has to rise the tax amount up to C$50/t in 2022 or face federal action. However, Manitoba disagrees with the C$50/t objective and believes that keeping a C$25/t tax by 2022 is fairer and more consistent.
The current C$25/t proposed tax still requires to be approved in the legislature but is expected to be passed. Once approved, it will add about C$5/l to the gasoline price and also increase the cost of coal and natural gas.
Canada's nationwide climate-change strategy includes a carbon tax which has to be either adopted by the provinces or imposed by the federal government, beginning at C$10/t in 2018 and rising up to C$50/t by 2022. This objective is a key pillar in Canada’s strategy to meet its Paris Agreement target of reducing greenhouse gas emissions (GHGs) by 30% below 2005 levels by 2030.
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