Isra-Mart srl : N.W.T. floats carbon tax idea

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Isra-Mart srl news:

The Northwest Territories government wants the public's thoughts on whether to introduce a carbon tax on gasoline, diesel and other fossil fuels.

A discussion paper released Thursday by the N.W.T. Finance Department floats the idea of a "revenue neutral" carbon tax that would encourage residents and businesses to cut down on how much fossil fuels they use, and therefore bring down the amount of greenhouse gas emissions generated.

"We've put the document on the table and we're looking to have a discussion," Finance Minister Michael Miltenberger told CBC News on Thursday.

"We're not, at this point, promoting a carbon tax. But we know it's one of the things that's out there, and we're looking for discussion and feedback."

The Northwest Territories does not have a provincial or Harmonized Sales Tax. The territorial government has been seeking revenue-generating options over the past two years.

A possible carbon tax would apply to fossil fuels used for transportation, energy generation and home heating, and would be imposed in addition to the N.W.T.'s existing fuel tax.

The current fuel tax applies to the consumption of gasoline, rail and aviation fuel and diesel, with rates ranging from one cent per litre for aviation fuel to 11.4 cents per litre for rail fuel.

However, natural gas, propane and space-heating fuel are currently exempt from the fuel tax. Those fuels would not be exempt from a carbon tax, according to the discussion paper.