BC to eliminate Consumer Carbon Tax effective tomorrow

The British Columbia government will eliminate the consumer carbon tax effective Tuesday, April 1, 2025, aligning the province with changes to the federal carbon pricing system. Premier David Eby announced the move Monday, saying the tax has become politically divisive and burdensome for residents struggling with the cost of living.

“British Columbians are doing everything they can to reduce their emissions,” Eby said. “But people shouldn’t have to choose between climate action and being able to afford their bills. We will help with costs while ensuring big polluters continue to pay.”

The tax cut will remove roughly 17 cents per litre from fuel prices and 15 cents per cubic metre from natural gas used for home heating. The climate action tax credit, introduced to offset the tax cost for households, will also be cancelled, with the final payment issued in April 2025.

Finance Minister Brenda Bailey said the decision marks a significant shift but reflects changing public sentiment. “The carbon tax has been an important tool in B.C. for over a decade and a half, but it has become too politically divisive and a distraction from the important issues we are tackling,” she said.

The province said that cancelling the tax and the credit will cost the province $1.99 billion in the upcoming fiscal year.  However, heavy emitters will still be required to pay under the B.C. output-based pricing system, which incentivizes industry to cut emissions.

“We remain committed to driving down emissions while making life more affordable,” said Adrian Dix, Minister of Energy and Climate Solutions. He pointed to continued investments in heat pump rebates, energy efficiency upgrades, and zero-emission vehicle infrastructure.

Key changes include requiring natural gas providers to issue credits or refunds to customers incorrectly charged after the tax ends. The average household carbon tax burden was projected at $410 in 2025–26.