On September 2, 2020, the Government of British Columbia announced that it will further delay implementation dates for changes to the B.C. Carbon Tax and Provincial Sales Tax (PST) due to COVID-19.
In March 2020, the B.C. Government delayed a scheduled increase from $40 to $45 per tonne of carbon dioxide equivalent (tCO2e) in April 2020 until September 30, 2020, as part of the province's COVID-19 Action Plan. With the further implementation delay, the B.C. Carbon Tax rate will remain at $40 per tCO2e until April 2021, when it will increase to $45 per tCO2e. In April 2022, there will be another scheduled increase to $50 per tCO2e. The current change is aimed at giving businesses and families more time to recover from COVID-19, while still meeting the federal carbon-pricing backstop rate of $50 per tCO2e by 2022.
In addition, we note that:
The COVID-19 pandemic has caused the federal government and some provincial governments to extend regulatory compliance reporting. However, given the federal carbon-pricing targets in 2022, governments are unlikely to grant further delays.