Last carbon tax rebate arrives Tuesday, but Finance Canada won't say how much it costs

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The quarterly federal rebate was covered by carbon tax revenues, but the carbon tax on fuel ended April 1. In other words, Tuesday's payment could be considered a bonus or government transfer — since it's not being recouped from taxes collected at the pump.

Canadians will receive an extra carbon tax rebate on April 22

David Thurton · CBC News

· Posted: Apr 21, 2025 4:00 AM EDT | Last Updated: 10 minutes ago

A man fills up his truck with gas in Toronto, on Monday April 1, 2019

Those living in provinces where the federal consumer carbon tax was in place will get one final rebate — even though the program stopped collecting revenue last month. (Christopher Katsarov/The Canadian Press)

The last Canada Carbon Rebate arrives on Tuesday after Liberal Leader Mark Carney killed the federal consumer price on carbon.

Only those who filed their 2024 income taxes electronically by April 2 will receive the payment on Tuesday. Otherwise, the final payment will be deposited once the Canada Revenue Agency assesses their return.

The quarterly federal rebate was covered by carbon tax revenues, but the carbon tax on fuel ended April 1.

In other words, Tuesday's payment could be considered a bonus or government transfer — since it's not being recouped from taxes collected at the pump.

For more than a month, CBC News has been asking Finance Canada, the federal department which oversees the collection of the fuel charge, to disclose the total cost of this final payment. The department declined to say how much the rebate would impact Ottawa's bottom line.

But based on previous payouts, the total cost could be at least $2 billion.

A Finance Canada spokesperson suggested the government continued the extra payment as an affordability measure.

"The government has decided to maintain the April payment to individuals given that Canadian families, especially low-income families, have been counting on the April rebate," said Finance Canada spokesperson Benoit Mayrand.

Green Party co-Leader Jonathan Pedneault said Canadians are "entitled" to the final payment, but acknowledged its timing — just days before Canadians head to the polls on April 28 — is not ideal.

"It's not the best time when it happens in the middle of an election campaign," Pedneault said. "I think that a lot of people will criticize this as being a bit of a Liberal gift."

University of Alberta economics Prof. Andrew Leach said the Liberals likely had no choice but to absorb the loss because the carbon tax was so misunderstood.

"I feel that people didn't really recall that the first rebate was paid before the carbon price took effect," he said.

"I don't think people really believed this to be true or had internalized it."

WATCH | Quebec has Canada's last consumer carbon tax: 

Quebec is the last province with a price on carbon. Should that change?

Quebec has successfully managed its own carbon pricing system for years without issue. But with the federal consumer carbon tax officially abolished, the province’s system is standing out.

While the Finance Department won't say how much the payment will cost, it has released the April 2025 rebate amounts.

Here's what eligible adults will be receiving in provinces where the federal carbon rebate applies:

  • Newfoundland and Labrador: $149.
  • Prince Edward Island: $110.
  • Nova Scotia: $110.
  • New Brunswick: $165.
  • Ontario: $151.
  • Manitoba: $150.
  • Saskatchewan: $206.
  • Alberta: $228.

Canadians in provinces that qualify for an additional rural supplement will receive a 20 per cent top-up. The rural supplement has already been factored into PEI's payment.

Small businesses that were eligible for the Canada Carbon Rebate will still get their reimbursement for carbon tax paid over the last 12 months.

"The Minister of Finance will specify payment rates to return the previously specified $623.1 million in proceeds for the 2024-25 fuel charge year," according to Finance Canada's website.

ABOUT THE AUTHOR

David Thurton is a senior reporter in CBC's Parliamentary Bureau. He covers daily politics in the nation’s capital and specializes in environment and energy policy. Born in Canada but raised in Trinidad and Tobago, he’s moved around more times than he can count. He’s worked for CBC in several provinces and territories, including Alberta and the Northwest Territories. He can be reached at david.thurton@cbc.ca

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