Deputy premier Sarah Hoffman assures Albertans that a few cents above the normal gas rate will do Alberta a lot of good in the long game. The first of January 2017 saw the implementation of the new carbon tax in the country.
The effect of the tax was obvious as most of it was focused on gas prices. The tax hikes caused the price of gas to increase by 4.49 cents per litre and diesel went up to 5.35 cents per litre.
Reported prices saw a rise of up to $1.12 in the Edmonton area till noon, but some locations were still operating at the price of $0.96. The average trending price was $1.08 which was two cents higher than that seen on December 31st.
This is a grand plan that is said to bring $9.6 billion to the economy and use it for the diversification of the energy industry and rebating it to low and middle income families among Albertans.
The division is as follows:
- $3.4 billion for large scale renewable energy projects
- $2.2 for green infrastructure and public transit
- $645 million for Energy Efficiency Alberta
- $2.3 billion for carbon rebates
- $865 million for bringing down the small business tax rate
- $195 million for indigenous and coal communities
Although people of Canada are not at all happy with the extreme rise in rates of gas, Hoffman asks them to look at the long game which includes the pipeline approval. The pipeline is an extremely valuable source of income for Alberta, but unless the tax was implemented, the project would not have gotten a green light from the Prime Minister.
The long game seems a bit too farfetched an idea right now because with all the taxes putting more pressure on small business owners and farmers, this is going to be a huge blow to the economy at first. If Canada somehow sustains this initial damage, it is still unpredictable when the fruits of the long game will start to present themselves.