A Distributional Analysis of the Federal Fuel Charge under the 2030 Emissions Reduction Plan
Published on March 30, 2023
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This report provides a distributional analysis of the federal fuel charge under the Government’s 2030 Emissions Reduction Plan.
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When both fiscal and economic impacts of the federal fuel charge are considered, we estimate that most households will see a net loss. Based on our analysis, most households will pay more in fuel charges and GST—as well as receiving slightly lower incomes—than they will receive in Climate Action Incentive payments.
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We estimate that the Government will collect and return $11.8 billion in fuel charges in the seven provinces where the charge applies in 2023-24, and that amount will rise to $25 billion in 2030-31.
Yves
Giroux
Parliamentary Budget Officer
Parliamentary Budget Officer