A controversial tax imposed on some Canadians will be reduced at the beginning of the new year, thanks to biodiesel.
Today’s Trucking.com reports that British Columbia’s carbon tax will drop by 5 percent and planned increases will also be lessened because of renewable fuels:
On Jan. 1, 2010 the carbon tax rate on diesel drops from 4.04 cents per litre to 3.84 cents per litre and on gasoline from 3.51 cents per litre to 3.33 cents per litre.
On July 1, 2010 the carbon tax rate will increase to 5.11 cents per litre (adjusted from 5.38 cents per litre) for diesel and 4.45 cents per litre (from 4.68 cents per litre) for gasoline.
The government determined the annual rate increase when the carbon tax first became effective and it will continue until July 2012. Yearly increases for diesel, adjusted for the renewable fuels, will be: July 1, 2011 –¬ 6.39 cents per litre, instead of 6.73 cents per litre; and July 1, 2012 –¬ 7.67 cents per litre, instead of 8.07 cents per litre.
The tax was expected to cost the trucking industry $20 million. Maybe if we can get a bit more of cleaner burning biodiesel into the mix, they’ll save even more.