The federal government has announced the rebranding of its carbon tax rebate system, without making any changes to the program itself.
“Granted, the previous name was a bit difficult to understand and even for many people to remember,” said Environment Minister Steven Guilbeault in announcing the measure on Feb. 14.
The minister had been asked by reporters whether changing the name of the program would be enough to overcome communication issues with Canadians.
Mr. Guilbeault said the government is working with financial institutions to make sure the payment is properly labelled on bank statements.
The Climate Action Incentive Payment, which redistributes money collected from the carbon tax, has been rebranded the Canada Carbon Rebate.
Labour Minister Seamus O’Regan remarked that it’s easy to say a rebrand is not going to “save the world,” but said there’s value in using words people relate to.
“Because people say the words ‘carbon,’ they say the word ‘rebate,’ right? And if we can speak that language that’s important,” he said.
Alberta, Manitoba, Ontario, Saskatchewan, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador households receive quarterly carbon rebate payments.
The Liberal government says that most Canadians receive more in rebates than they spend, but this has been disputed by the budget watchdog.
The Parliamentary Budget Officer (PBO) reported in 2023 that adding losses in economic efficiency to the fiscal impacts of federal carbon pricing increases the net carbon cost for all households in Ontario, Manitoba, Saskatchewan, and Alberta.
The PBO said most households in provinces with the backstop will experience a net loss from federal carbon pricing, as their household carbon costs will surpass the climate payments they receive.
The Conservatives have surged in the polls in recent months with a message centred on affordability and a promise to “axe” the carbon tax.
“The Canadian standing in line outside of a food bank doesn’t care that the Prime Minister wants them to call this useless policy a ‘rebate’ instead of an ‘incentive payment,’” said the party in a Feb. 14 statement.
“They just need their groceries to be cheaper. But instead of providing that relief, Trudeau has provided more tax dollars to the costly consultants who came up with this name change.”
Mr. Guilbeault defended the tax during his press conference and said it’s the “cheapest way of reducing emissions.”
Mr. O’Regan echoed this to criticize the Conservative plan, saying that he doesn’t think that Conservative Party Leader Pierre Poilievre “cares about the lowest income families who get the most money back here.”
