All banks to label Canada Carbon Rebate correctly, as Liberals defend embattled policy

Posted on October 15, 2024 by Peggy

When Canadians receive their carbon pricing rebates on Tuesday, it will be the first time all banks will label the payment as the Canada Carbon Rebate, the federal government says.

This comes after years of inconsistent and vague phrasing on bank statements.

The quarterly rebate goes to Canadians who filed their income tax while living in Alberta, Saskatchewan, Manitoba, Ontario and all four Atlantic provinces.

Ottawa has been battling with banks about how the deposits are labelled since they moved to quarterly payments for the rebates in 2022.

Many Canadians were confused — or didn’t even realize they were getting a rebate — when payments showed up with vague labels like “EFT deposit from Canada,” “EFT Credit Canada” or just “Federal Payment.”

Some banks previously argued the term “Canada Carbon Rebate” went beyond their 15-character limit on deposit descriptions.

The payments vary by household size and province, while those in rural areas get a top-up.

On Tuesday, rural residents will get a boost in their quarterly rebate, with a 20 per cent top-up, along with a retroactive 10 per cent payment for April and July.

Some parties less supportive of policy

Economists are widely in favour of carbon pricing, arguing it is the most cost-effective way to reduce emissions, but the Liberals’ policy is facing pushback at the provincial and federal levels, with the Conservatives calling for a “carbon-tax election” to bring down the cost of living.

The federal NDP and some of their provincial counterparts have distanced themselves from the policy, which they previously supported.

Ottawa sends the rebates to offset what people pay in carbon pricing when they buy fuel so they’re not worse off as a result.

WATCH | Got questions about the carbon tax? We’ve got answers:

Carbon tax crash course: How it works and what it will cost you

7 months ago

Duration 6:16

With Canada’s carbon tax set to increase again on April 1, many Canadians have been asking questions about how it works and what the increase will cost. CBC’s David Thurton breaks down the policy, the price and the rebates.

People who do things to lower their fuel use are even better off, because they get the same rebate but pay less in carbon pricing.

British Columbia, Quebec and Northwest Territories have their own carbon pricing system for consumers, so residents there don’t receive the federal payment. Yukon and Nunavut use the federal system but have an agreement to distribute the proceeds themselves.

The parliamentary budget officer says most Canadians get back more from the rebates than they pay.

He says that the economic impact of carbon pricing could lower wages over time, erasing that benefit for some Canadians. But the government argues that climate change itself can cause economic harm if left unchecked.