A Distributional Analysis of the Federal Fuel Charge under the 2030 Emissions Reduction Plan
This report provides a distributional analysis of the federal fuel charge under the Government’s 2030 Emissions Reduction Plan.
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.
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.
Parliamentary Budget Officer