Drivers in British Columbia will have to pay more at the pumps starting today.
The B-C government’s controversial carbon tax plan goes into effect this morning, and motorists in the province may soon be paying the highest gas prices in the country.
The plan will be phased in over five years to allow drivers to understand that there’s a cost associated with generating greenhouse gases.
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The tax works out to an extra 2.4 cents a litre on gas, rising to 7.24 cents per litre by 2012.
British Columbians already pay a 3.5-cent-per-litre gasoline tax to help pay for transportation projects.
The tax is being billed as revenue neutral, meaning the government will not use money generated from the tax to fill its coffers.
The tax is expected to bring in more than a billion dollars in revenue that will be returned through income and business tax breaks
The plan isn’t popular with drivers, but Premier Gordon Campbell says his government has come up with the most aggressive green plan in North America.