On March 7, 2019, Yukon Premier and Finance Minister Sandy Silver delivered the territory’s 2019 budget. This year’s budget focuses on housing initiatives, investments in education, transportation infrastructure, and environmentally sustainable economic initiatives, including regional economic development opportunities for First Nations.
The budget comments on the impending introduction of a carbon tax, as discussed below.
Introduction of Federal Carbon Tax
The federal government will be introducing the carbon levy, effective July 1, 2019, in the Yukon. The levy will be applicable to fuels purchased in the Yukon at an initial rate of $20 per tonne of carbon dioxide equivalent emissions. This rate will increase by $10 on April 1 of each year until 2022, when the price on carbon is expected to be $50 per tonne.
Carbon Tax Rebate
To demonstrate that the carbon levy is intended to discourage pollution and alleviate the potential economic impact of the new tax on residents, the Yukon government has announced the introduction of a carbon price rebate program which will effectively return the levies charged back to individuals, businesses, First Nations, and municipal governments.
Additional information on the 2019 Yukon budget can be found on the province’s website at: Yukon Budget 2019.
If you have any questions about how these changes might impact your organization, please do not hesitate to call the Ryan TaxDirect® line at 1.800.667.1600.