Effective April 1 the Federal Government imposed tax is in place in Manitoba, Saskatchewan, Ontario and New Brunswick. The Federal Tax is $20 per tonne this year and will increase annually by $10 per tonne until it reaches $50 per tonne in April 2022.
This year the price of a litre of gas will increase by 4.4 cents, about 4 cents a cubic metre of natural gas and it will drive up the price of propane, butane and aviation fuel. Here in Manitoba we saw the impact immediately as prices at gas stations increased on April 1. Businesses and consumers will be paying more for many items they purchase.
The government has created a rebate system that they say will return most of the extra costs incurred by consumers in the form of an income tax rebate. They have not revealed details on how they will deal with the increase costs incurred by small to mid-sized businesses.
The new tax has resulted in uncertainty on how businesses should react – can they afford to absorb the costs or should they pass on at least part of the costs to customers. If you are unsure, contact us and we can help you assess the impact on your business and recommend an action plan.
Greg Libbrecht, President - Platinum Books & Five Star Accounting