Removing the value-added tax (GST) from carbon pricing in the country could result in a loss of $1 billion in tax revenue, according to a report by Canada's Parliamentary Budget Watchdog.

This report examines Bill C-358, which was introduced by Alex Ruff, a member of the Conservative Party of Canada. The bill calls for removing GST from the federal government's carbon pricing program.

According to the report, removing GST from carbon pricing would reduce federal government tax revenues by $486 million in 2023-24 and $1.015 billion in 2031-2030.

The removal of GST from carbon pricing has been one of the solutions proposed by the Conservative Party to reduce the pressures caused by high inflation on the people. Carbon pricing is one of the main policies of the Liberal government, which was widely criticized in October when it announced a freeze on carbon price increases for household fuel for the next three years. This decision was not considered fair due to the widespread use of domestic fuel in the eastern parts of Canada.

Important Notes:

Removing GST from carbon pricing would mean a reduction in government tax revenues.
This policy is supported by the conservative party and against the liberal government.
Abolition of GST could help reduce inflationary pressures on the people, but its long-term effects on the environment and government revenues need to be investigated.

news source