The new carbon tax is set to raise approximately $9.6 billion over the next five years – but some working in the transportation industry are worried they may be paying more than their fair share.
“Obviously, we need fuel for the trucks. That really hurts our bottom line,” said Norm Parrott, owner of Big Dripper Water Hauling, a Cochrane-based business. “We would probably have to pass some of that along to our customers.”
Big Dripper is a small water hauling trucking company with a fleet of five trucks, according to Parrott. At present, the company spends about $1,000 per week on fuel.
The new carbon levy, passed in legislature June 7, will regulate a tax on major fuels starting Jan. 1, 2017. At a price of $20 per tonne, diesel fuel will be taxed at a rate of approximately five cents per litre, while gasoline will be taxed at approximately four cents per litre.
“Everyone is going to be affected by that – that’s your groceries, your restaurants, pretty much everything,” Parrott said. “I know people are against the (provincial sales tax), we haven’t had it traditionally, but just from a selfish point of view that would spread it out.”
Though businesses are not eligible for carbon rebates, the Alberta government will cut the small business tax rate by one third.
“After the carbon levy is introduced in 2017, Alberta will have the third-lowest provincial fuel taxes/levies of any Canadian jurisdiction,” Environment Minister Shannon Phillips said in an email to the Rocky View Weekly. “When all taxes are taken into consideration Alberta is the most competitive tax jurisdiction in Canada for small business.”
Wildrose Olds-Didsbury Three Hills MLA Nathan Cooper said an amendment introduced by his party exempting non-profits and charities from the tax was voted down June 6.
The Rocky View Regional Handi Bus Society (RVRHS), which provides transit services for individuals with special transportation needs throughout RVC, currently spends approximately $85,000 per year on fuel.
With the new tax, RVRHS General Manager Paul Siller said he anticipated costs for fuel and utilities would cost the organization approximately an additional $7,000 next year.
However, as a community transit organization, other upcoming government programs could lessen the impact of the new tax.
“We may be finally be getting some financial support from the Province, something that hasn’t happened since 1994,” Siller said. “So we’re in the middle of the road, the middle ground of the carbon tax debate for charities.”
Siller said with the price of fuel down throughout Alberta, a four cent per litre increase would be negligible compared to what the organization was used to spending.
“Let me put it this way – every time there’s a cost to provide service, we have to grit our teeth and figure out where the money comes from. But for the next year, I don’t see the carbon tax raising prices higher than what we were paying for fuel 18 months ago,” he said. “We’ve been happy with the low gas prices. But that’s (similar to when) we’re happy when we have a mild winter. Not every winter will be mild.”
