The program is designed to offset some costs imposed by Ottawa's carbon tax system, which applies a price on emissions including those generated by the use of gasoline and natural gas. The payments are available only to the residents of provinces without pollution pricing systems that meet the new federal standard. Ottawa plans to increase the carbon tax to $170 per tonne by 2030. However, a recent report from the Parliamentary Budget Office (PBO), Canada's fiscal watchdog, concluded that for most households — especially high-income ones — the federal carbon price represents "a net loss." Alberta, Saskatchewan and Ontario mounted a legal challenge against Ottawa's carbon tax system, which the provinces called unconstitutional.

Source: CBC News July 16, 2022 01:38 UTC