Brampton mayor Brown urges feds to delay carbon tax increase

With gas prices set to soar by up to 13 cents a litre this week, one mayor in the Greater Toronto Area is pleading with the federal government to pause a planned carbon tax increase on April 1.

“Now is not the time,” said Brampton Mayor Patrick Brown. “We’re seeing economic uncertainty like we’ve never seen before.”

The federal plan calls for the current charge of $30 per tonne of industrial greenhouse gas emissions to be bumped to $40 per tonne beginning next month. According to the Canadian Revenue Agency (CRA), that would increase the cost of gasoline by 8.8 cents a litre.

Another upsurge is due later this year that will see the carbon tax boosted to $50 per tonne by the end of 2022.

The April 1 increase coincides with the Russian invasion of Ukraine, which has already sent gas prices soaring. Brown believes it’s another cost that both Brampton residents and businesses can’t afford to carry.

He says he’s planning to write a letter to federal Finance Minister Chrystia Freeland, urging her to pause the carbon tax increase.

“It’s bad enough that we went through two years of economic chaos with the pandemic where our businesses are struggling,” said Brown.

“The reports that we’re going to see gas prices within four to six weeks at 1.90 a litre, my policy has been consistent throughout this pandemic: I want no new taxes, no new burdens on the backs of our families and our small businesses.”

Russia is one of the biggest energy producers globally, and one industry insider believes international sanctions against the Russian government will continue to drive oil costs higher.

Roger McKnight, the chief petroleum analyst at En-Pro International Inc., says we could “absolutely see prices add $20, $30, $40 dollars a barrel” if the landscape continues to worsen.

Earlier this week, Ontario Premier Doug Ford sounded uncertain about taking steps to lower gas prices, saying that he would “look into” a possible price cut.

Ford promised during the 2018 election to cut gas prices by 10 cents, with 4.3 cents coming from ending the previous Liberal government’s cap-and-trade system. That reduction was eventually neutralized by the imposition of the federal carbon tax.

“We have to get back on our feet in the weeks and months ahead as we emerge from COVID,” said Brown.

“This hasn’t just been a health pandemic, it’s been an economic tidal wave, and it breaks my heart every time I hear about a new small business in Brampton that has gone under. I don’t want to hear those stories anymore.”