“Under the federal government’s current rebate structure, most households will still receive more than what they pay in fuel charges,” parliamentary budget officer Yves Giroux said Tuesday.
“However, once the provincial and federal sales taxes on carbon pricing are accounted for, these amounts will be lower on a net basis when compared with the analysis in our previous report.”.
In a report last April, the PBO estimated the carbon-tax costs and rebates for households in Saskatchewan, Manitoba, Ontario and New Brunswick, and found the majority would come out ahead.
“Most households will receive higher transfers than amounts paid in fuel charges,” according to Giroux’s report.
Large and higher-income households were also expected to actually pay a cost, as the rebate did not keep up with their consumption.
Part of the reason is wealthier Canadians tend to own bigger homes, own bigger cars and drive more often.
But the rebate also tails off as households have more children. »