The federal carbon pollution pricing system has two components: the fuel charge and the output-based pricing system (OBPS) for emissions-intensive trade-exposed industries. Those who implemented their own system manage the tax revenue themselves. The provinces who opted out must use the federal system. The federal government began working with all jurisdictions over two years ago to develop programs. The tax hits industry and businesses, but increased costs are passed onto consumers who pay higher electricity, heating and gasoline costs.Д®ach province or territory has its own carbon tax system. In a nutshell, the carbon tax is designed to tax anyone who uses fossil fuels: industrial users, fuel producers, distributors and consumers, including businesses and individuals.

ThereвЂ™s also a rebate system for businesses to soften the blow for them, but critics are skeptical.

It redistributes the tax revenue directly to taxpayers when they file their tax returns. ItвЂ™s designed to make users of fossil fuels pay a вЂњpollution priceвЂќ and increase awareness about the social and economic costs of their carbon footprint. The carbon tax will tax large industrial users, fuel producers, distributors and consumers. British Columbia, Alberta, and Quebec already had their own carbon pricing systems. It is challenging the federal tax in court along with the other four provinces. The four provinces that refused to participate were Ontario, New Brunswick, Manitoba, and Saskatchewan.ДЄlberta joined that group after it repealed its previous legal commitment when the provincial government changed in early 2019. The federal government announced the new carbon tax or what it calls вЂњpollution pricingвЂќ for the provinces that hadnвЂ™t adopted their own carbon tax system in October of 2018.

Federal taxes for small business