Ottawa Considering Rebrand of Carbon Tax Rebate Program to Address ‘Confusion’

Prime Minister Justin Trudeau speaks to the media and students regarding his government’s new federally imposed carbon tax, at Humber College in Toronto on Oct. 23, 2018. The Canadian Press/Nathan Denette

Ottawa is thinking about rebranding its carbon tax rebate program to address what it says is “confusion,” according to a media report.

The potential rebrand of its climate action incentive payment (CAIP) could include changing its name or asking banks to better label the quarterly payments, an unnamed senior government official told Toronto Star. The rebrand is a multi-department effort, the source said, adding that changes would likely coincide with the next quarterly rebate payment in April.

Natural Resources Minister Jonathan Wilkinson confirmed this week that discussions about a potential rebrand are happening but gave no specifics about the government’s plans.

“I think the discussions around rebranding really relate to trying to ensure that it’s understandable,” Mr. Wilkinson told reporters prior to the Liberals’ weekly cabinet meeting. “A lot of folks out there don’t know what they’re getting when they actually get the rebate.”

A recent Abacus Data poll asked Canadians if they know the purpose of the rebate. More than half—52 percent—did not know what it was for, despite 72 percent being aware of it.

The poll, conducted from Jan. 18 to 23, also found that public perception of the carbon tax and the related rebate program is largely negative, even in provinces where Liberals hold a relatively higher number of seats.

In Ontario, 45 percent of survey respondents said they thought the carbon tax was a bad policy compared to 37 percent who described it as a good policy. In the Atlantic provinces, 49 percent of respondents thought the policy was bad while just 31 percent believed it was good.

Nearly 50 percent of all respondents said the carbon tax is a key factor causing inflation.

Rebrand Reaction

Conservative Leader Pierre Poilievre was among the first to comment on the potential Liberal plan.

“No matter how much lipstick the Liberals try to put on a very ugly carbon tax pig, it doesn’t change the fact: Trudeau’s carbon tax is a very costly, ugly, hungry pig,” he said in a post on X. “Axe the tax.”

Tory MP Michelle Rempel Garner posted a video on X saying, “Any way you brand it, a tax is a tax is a tax is a tax.”

“Instead of spending money on pricey consultants and advertising to rebrand the carbon tax, Justin Trudeau needs to axe it instead,” she added.

Canadian Taxpayers Federation federal director Franco Terrazzano called the potential rebrand a waste of time, saying “snappy slogans” won’t solve the Liberals’ “political woes.”

“Trudeau’s problem isn’t that Canadians don’t know what his government is doing. His problem is Canadians know exactly what his government is doing and don’t support it,”  Mr. Terrazzano said in a blog post. “The carbon tax illustrates this point perfectly.”

The Epoch Times contacted the Prime Minister’s Office for comment about the potential rebrand of the carbon tax rebate but did not immediately hear back.

‘Net Loss’

Levied by the Liberal government in 2019, Canada’s carbon tax is the price placed on the carbon content of fuels to reduce CO2 emissions. Prime Minister Justin Trudeau has described it as a necessity not only to foster greener thinking but to achieve net-zero carbon emissions by 2050.

Although Mr. Trudeau has maintained that most households will receive more money back in CAIP rebates than they shell out due to the carbon tax, Parliamentary Budget Officer (PBO) figures have called that claim into question.

A 2023 PBO report said Ottawa’s carbon tax would result in a “net loss” in 2024–25 for most Canadian households even after federal rebates. The average net loss ranges from $377 for those in Newfoundland and Labrador to $911 for those in Alberta.

“When both fiscal and economic impacts of the federal fuel charge are considered, we estimate that most households will see a net loss,” PBO Yves Giroux said in a March 30, 2023, news release. “Based on our analysis, most households will pay more in fuel charges and GST—as well as receiving slightly lower incomes—than they will receive in Climate Action Incentive payments.”

Carbon pricing kicked off in 2019 at $20 per tonne and was set to increase by $10 per tonne each year until it reaches $50 in 2022–23. It was then set to rise by $15 per tonne every year, reaching $65 in 2023–24, until it eventually reaches $170 per tonne in 2030–31.