NEW - MB: Manitoba introduces new carbon tax but the federal government's backstop may still be applied
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The Manitoba government has been under the federal carbon tax (the “backstop”) since January 2019. However, the Pallister government has recently introduced its own carbon tax, which applies a flat fixed rate of $25 per tonne of carbon dioxide equivalent. While the plan exempts fuel used for heating barns and drying grain, the understanding is that the first $25 will be exempted but the federal government will charge their federal backstop on anything over and above $25 per tonne.
Ultimately, this means that Manitoba farmers can expect to pay what they did this year by the year 2022. Details on the plan are still forthcoming. The CPA maintains that propane used in agricultural applications must be exempt from any carbon tax regime and will continue to push for full exemption.
The CPA will continue to monitor the situation. For more information, please contact V.P. Government Relations Allan Murphy at allanmurphy@propane.ca.
