The B.C. government is eliminating the provincial carbon tax effective Tuesday, April 1st, 2025.
New legislation drops the rate to zero, aligning B.C.’s carbon tax with the federal rate.
This change means consumers will save around 17 cents per litre on fuel and 15 cents per cubic metre on natural gas for home heating.
The climate action tax credit, designed to offset the carbon tax’s impact on households, will also be discontinued, with the final payment issued in April 2025.
The cancellation of the tax and credit is expected to cost the province $1.99 billion in the upcoming fiscal year.
The B.C. government plans to restructure programs previously funded by carbon tax revenue to protect the provincial budget while supporting climate goals.
Meanwhile, major polluters will still face costs through the B.C. output-based carbon pricing system, which encourages industries to reduce emissions.
