Manitoba To Implement Flat $25-Per-Tonne Green Levy, PST will be reduced to Six Per Cent

March 5, 2020 – background information

MANITOBA TO IMPLEMENT FLAT $25-PER-TONNE GREEN LEVY, PST WILL BE REDUCED TO SIX PER CENT

The Manitoba government will implement a flat $25-per-tonne Green Levy and reduce the PST to six per cent, saving Manitoba families and businesses more than a billion dollars over the next five years compared to the rising federal carbon tax, Premier Brian Pallister announced today.

Both the made-in-Manitoba Green Levy and the PST reduction will come into effect on July 1.

“Unfortunately, the federal government ignored our request to work together as a true partner in tackling climate change, so we have no choice but to act now to protect Manitobans from the rising federal government carbon tax they are bringing in this year,” said Pallister.  “Ottawa has provided special exceptions and exemptions to many other provinces but refused to consider Manitoba’s significant clean hydro investments.”

Manitobans will come out ahead with both the flat Green Levy and lower PST.  The average Manitoba household will save $200 in 2022 through Manitoba’s flat Green Levy alone, adding up to more than $700 over the next five years, the premier said.

The premier noted that 100 per cent of the flat Manitoba Green Levy will be returned to Manitobans.  Dropping the PST to six per cent will save Manitobans $325 million each year, $40 million more than the actual cost of the flat Manitoba carbon levy.  The average Manitoba household will save $359 in 2022 with a six per cent PST.

“Unlike the federal government’s rising carbon tax, our flat made-in-Manitoba Green Levy will return all of the money and more to Manitobans with the second-lowest PST in Canada,” said Pallister.

Manitoba large industrial emitters will reduce emissions through a made-in-Manitoba output-based carbon pricing system based on the flat Green Levy of $25 per tonne.

Greenhouse-gas emissions in Manitoba will be reduced by at least two megatonnes (MT) over the five-year carbon savings account period set in legislation, a doubling of the original one MT goal fixed last June.

“Manitobans know tackling climate change is important and we are already doing our part by investing billions in clean, green hydro,” said Pallister.  “Together with the our hydro investments, the highest clean fuel standards in the country announced in January, plus additional measures we are taking, Manitoba’s carbon emissions will be reduced by more than any previous government.  Our plan is better for the environment, better for the economy, and better for children and grandchildren.”

Manitoba is taking strong action on climate change and implementing a flat Green Levy to replace the federal backstop carbon tax, Pallister added.

“Manitoba has offered to be a bridge between east and west on climate and carbon and that offer still stands,” said Pallister.  “Working with us should not be a bridge too far for the federal government.”

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