This is now worth about $ 1,200 for a family of four, but there are changes to how this discount will be paid. In previous years, the discount simply offset the income taxes due in April. This year, residents will have to wait until the summer to see the cash. The first installment is expected to appear in citizens’ mailboxes or bank accounts in July.

Automatic discount

The discount, called Climate Action Incentive, is only available to residents of Alberta, Saskatchewan, Manitoba and Ontario. These counties did not voluntarily adopt a provincial coal tax that met federal requirements. As a result, they were subject to a federal carbon tax. Julia Nicholls is in charge of empowerment with Rise Calgary. (Submitted by Rise Calgary)
It was a painful point for Alberta’s prime minister, Jason Kenney, who called on the federal government to halt the increase last week. He says Alberts are already suffering a lot from inflation, which is at a high of 30 years. CBC Calgary monitors the impact of rising energy prices by inviting community members to share their experiences and questions. Many have expressed frustration with rising tariffs, including coal tax, which appears as a line item in the gas section of many utility bills. It is also charged in the petrol pump. Many have asked if this tax is being refunded. Refunds are automatic as long as Alberts file their taxes. You are eligible if you are 19 years old or older, have a child living with you and / or have a spouse.

Payments now quarterly

Julia Nicholls, head of tax clinics in Rise Calgary (formerly Sunrise), says the new payment structure is something many Alberts need to be aware of, especially if they rely on this refund to help pay their bills. They advised people to plan to pay off the debt by placing it in a savings account. “Previously, we expected a big lump sum,” he said. “Because this money is being distributed, it can certainly have an impact on someone’s debt repayment plan, perhaps bills, utilities and general savings.” The payment is now divided into four. Alberts receive double discounts in July and then single payments in October, January and April. This last payment will take into account the increase in 2023 to $ 65 a ton. “These discounts are structured to effectively prepay families to compensate for the expected cost increases associated with coal pricing,” said Jennifer Winter, an associate professor of economics at the University of Calgary.

$ 1,200 for a 4-member Alberta family

The actual amount of the discount depends on the county, but in Alberta one person is expected to receive $ 300 during the year and a family of four is expected to receive $ 1,200. Winter says the change in federal tax is a three-cent increase in the price of gasoline. But the Alberts are unlikely to notice, because at the same time on April 1, the provincial government cut the gas tax. This is a reduction of 13 cents per liter at least until June 30. Indicative amounts of incentive payment for climate action for 2021 and 2022. (CRA)
“But we are not really going to see this change in any real results, because all we are seeing is the price of gasoline, which includes wholesale, retail, federal gas tax, federal coal tax and GST », he said. he said.

“Reactionary measures”

Earlier this month, the government said it would also provide $ 150 discounts on electricity to help families, farms and small businesses in Alberta with high electricity bills. Fluctuating electricity prices more than doubled during the winter and are expected to rise again this summer. But Winter says changes such as the Alberta gas tax holiday and the carbon tax cut are not the best way to address affordability concerns. “Even this utility discount, if you are someone who has your electricity or gas included in your rent, it means that your landlord is benefiting from this discount and not you,” he said. “These are reactionary measures that have not been properly designed to address the fundamental concerns of affordability and the cost of living and rising energy prices.”

Discount and benefits tool

Nicholls also recommends a new tool from Prosper Canada called Benefits Wayfinder, which can help people find all the discounts and benefits they are eligible for. “It’s a very user-friendly tool where individuals and families can understand what this benefit credit or discount is, as well as how I can apply, what my eligibility is and what exactly I need to gather to move forward with that, “he said. Nichols.

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