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B.C. carbon tax rebates lower than the rest of Canada

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B.C., federal carbon taxes are the same, so why do British Columbians still pay more?

Carbon taxes go up April 1 across Canada, from $65 per tonne of CO2 to $80 per tonne, except in Quebec, but British Columbians will still generally pay more, due to the fact less carbon tax revenue gets kicked back to consumers in the form of rebates than elsewhere in Canada.

B.C.’s carbon tax goes up April 1 to $80 per tonne of CO2, as does the federal carbon tax, which applies in those provinces that didn’t already have a provincial carbon pricing scheme in place. But Canadians in other provinces get more back in rebates than British Columbians do, said Carson Binda, B.C. director for the Canadian Taxpayers Federation.

“British Columbians are absolutely getting the short end of the stick here,” he said.

B.C. was the first province in Canada to introduce an economy-wide carbon tax in 2008. Quebec had introduced carbon pricing in the form of cap and trade in 2007.  Quebec’s carbon pricing is lower than what other Canadians now pay. Quebec’s carbon pricing adds about 10 cents to a litre of gasoline, compared to 14 cents per litre everywhere else in Canada.

In 2019, the federal government’s carbon pricing backstop went into effect, meaning people in provinces like Saskatchewan, Ontario and Alberta that had not been paying a consumer carbon tax on heating and transportation fuels had to start paying federal tax.

The federal tax was originally lower than B.C.’s carbon tax, but has since caught up, and the prices are now harmonized at the same rates — $65 per tonne in 2023, rising to $80 per tonne April 1.

As of April 1, the carbon tax on gasoline will rise from $0.14 per litre to $0.17 per litre. Diesel and heating oil will go up by about four cents, from $0.17 to $0.21 per litre. Natural gas for home heating will go up by three cents, from $0.12 per gigajoule to $0.15.

Although B.C.’s carbon tax was originally revenue neutral when it was first adopted in 2008, at $10 per tonne, it no longer is. The government takes in much more in carbon taxes than it gives back in rebates.

Binda notes that, for the 2024-25 fiscal year, the B.C. budget expects to raise $2.56 billion in carbon tax revenue, and projects to spend $1 billion on rebates.

In B.C., only those who earn $39,115 a year or less will get a full rebate of $447 for the year. The rebate declines to zero once income hits $61,465 a year.

Rebates in other provinces that now pay the federal carbon tax are not income-tested. Everyone who fills out an income tax return gets a rebate. For example, in Alberta, a single person will get four instalments of $225 for 2024-25 – a total of $900. In Ontario, it’s $560 for the year.

“The federal government’s carbon tax rebates aren’t income tested – in B.C. they are,” Binda said. “And that’s a big issue with how it’s administered here in B.C. because of how low the income thresholds are.

“Normal, middle-class British Columbians are getting raked over the coals with what has historically been the highest carbon tax in Canada, and most people aren’t seeing a penny back from the province.”

Seven premiers in Canada have called on the Trudeau government to halt the April 1 carbon tax increase. B.C.’s Premier David Eby is not among them.

But he should be, according to a Leger poll commissioned by the CTF. The poll found 73 per cent of British Columbians want Eby to join the seven other premier in calling for a halt to the April 1 carbon tax hike.

Carbon taxes were proposed as a way of discouraging the use of fossil fuels by making them increasingly unaffordable. This would result in reduced use of fossil fuels, switching to cleaner energy sources, and reduced greenhouse gas emissions.

“The carbon tax isn’t working in B.C. for its stated goal of reducing emissions,” Binda said.

He noted that, over a 10-year period, GHG emissions actually rose in B.C., from 60.3 metric tonnes (MT) of CO2e in 2011 to 62 MT CO2 in 2021.

It should be noted that B.C.’s population grew during that 10-year period, from 4.4 million to 5 million, and its economy grew as well, with GDP growing from $219 billion to $288 billion.

Canada-wide, emissions have fallen nearly eight per cent since the federal carbon tax went into effect, according to a letter signed by more than 100 Canadian economists – most of them academics – who support carbon taxes.

“A new report from the Canadian Climate Institute shows that federal and provincial carbon pricing, for industries and consumers, is expected to account for almost half of Canada’s emissions reductions by 2030,” states the letter, which was written in response to increased calls from premiers and the federal Conservatives to scrap the federal carbon tax.

It notes that carbon pricing is not the only method for reducing GHGs, but says it’s the most cost-effective.

“Carbon pricing is the lowest cost approach because it gives each person and business the flexibility to choose the best way to reduce their carbon footprint. Other methods, such as direct regulations, tend to be more intrusive and inflexible, and cost more.”

 

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Dollarama keeping an eye on competitors as Loblaw launches new ultra-discount chain

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September 11, 2024

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Dollarama Inc.’s food aisles may have expanded far beyond sweet treats or piles of gum by the checkout counter in recent years, but its chief executive maintains his company is “not in the grocery business,” even if it’s keeping an eye on the sector.

“It’s just one small part of our store,” Neil Rossy told analysts on a Wednesday call, where he was questioned about the company’s food merchandise and rivals playing in the same space.

“We will keep an eye on all retailers — like all retailers keep an eye on us — to make sure that we’re competitive and we understand what’s out there.”

Over the last decade and as consumers have more recently sought deals, Dollarama’s food merchandise has expanded to include bread and pantry staples like cereal, rice and pasta sold at prices on par or below supermarkets.

However, the competition in the discount segment of the market Dollarama operates in intensified recently when the country’s biggest grocery chain began piloting a new ultra-discount store.

The No Name stores being tested by Loblaw Cos. Ltd. in Windsor, St. Catharines and Brockville, Ont., are billed as 20 per cent cheaper than discount retail competitors including No Frills. The grocery giant is able to offer such cost savings by relying on a smaller store footprint, fewer chilled products and a hearty range of No Name merchandise.

Though Rossy brushed off notions that his company is a supermarket challenger, grocers aren’t off his radar.

“All retailers in Canada are realistic about the fact that everyone is everyone’s competition on any given item or category,” he said.

Rossy declined to reveal how much of the chain’s sales would overlap with Loblaw or the food category, arguing the vast variety of items Dollarama sells is its strength rather than its grocery products alone.

“What makes Dollarama Dollarama is a very wide assortment of different departments that somewhat represent the old five-and-dime local convenience store,” he said.

The breadth of Dollarama’s offerings helped carry the company to a second-quarter profit of $285.9 million, up from $245.8 million in the same quarter last year as its sales rose 7.4 per cent.

The retailer said Wednesday the profit amounted to $1.02 per diluted share for the 13-week period ended July 28, up from 86 cents per diluted share a year earlier.

The period the quarter covers includes the start of summer, when Rossy said the weather was “terrible.”

“The weather got slightly better towards the end of the summer and our sales certainly increased, but not enough to make up for the season’s horrible start,” he said.

Sales totalled $1.56 billion for the quarter, up from $1.46 billion in the same quarter last year.

Comparable store sales, a key metric for retailers, increased 4.7 per cent, while the average transaction was down2.2 per cent and traffic was up seven per cent, RBC analyst Irene Nattel pointed out.

She told investors in a note that the numbers reflect “solid demand as cautious consumers focus on core consumables and everyday essentials.”

Analysts have attributed such behaviour to interest rates that have been slow to drop and high prices of key consumer goods, which are weighing on household budgets.

To cope, many Canadians have spent more time seeking deals, trading down to more affordable brands and forgoing small luxuries they would treat themselves to in better economic times.

“When people feel squeezed, they tend to shy away from discretionary, focus on the basics,” Rossy said. “When people are feeling good about their wallet, they tend to be more lax about the basics and more willing to spend on discretionary.”

The current economic situation has drawn in not just the average Canadian looking to save a buck or two, but also wealthier consumers.

“When the entire economy is feeling slightly squeezed, we get more consumers who might not have to or want to shop at a Dollarama generally or who enjoy shopping at a Dollarama but have the luxury of not having to worry about the price in some other store that they happen to be standing in that has those goods,” Rossy said.

“Well, when times are tougher, they’ll consider the extra five minutes to go to the store next door.”

This report by The Canadian Press was first published Sept. 11, 2024.

Companies in this story: (TSX:DOL)

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U.S. regulator fines TD Bank US$28M for faulty consumer reports

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September 11, 2024

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TORONTO – The U.S. Consumer Financial Protection Bureau has ordered TD Bank Group to pay US$28 million for repeatedly sharing inaccurate, negative information about its customers to consumer reporting companies.

The agency says TD has to pay US$7.76 million in total to tens of thousands of victims of its illegal actions, along with a US$20 million civil penalty.

It says TD shared information that contained systemic errors about credit card and bank deposit accounts to consumer reporting companies, which can include credit reports as well as screening reports for tenants and employees and other background checks.

CFPB director Rohit Chopra says in a statement that TD threatened the consumer reports of customers with fraudulent information then “barely lifted a finger to fix it,” and that regulators will need to “focus major attention” on TD Bank to change its course.

TD says in a statement it self-identified these issues and proactively worked to improve its practices, and that it is committed to delivering on its responsibilities to its customers.

The bank also faces scrutiny in the U.S. over its anti-money laundering program where it expects to pay more than US$3 billion in monetary penalties to resolve.

This report by The Canadian Press was first published Sept. 11, 2024.

Companies in this story: (TSX:TD)

The Canadian Press. All rights reserved.

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Amazon rejects plea to stop selling taxi roof signs as cab scam spreads across Canada

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3 days ago

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September 10, 2024

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After a long day at a work event in July, Kathryn Kozody was relieved when she spotted a car with a lit-up taxi sign.

She thought it was odd when the driver told her she’d have to pay her fare with a debit card. Still, a tired Kozody hopped in the car.

“I was like, ‘Fine, it’s kind of weird, but let’s go home,'” said Kozody, who lives in Calgary.

Nothing else seemed off — until the next day when she discovered that almost $2,000 was missing from her bank account. On top of that, her debit card had someone else’s name on it.

Kozody concluded that the taxi driver was a fraudster who, during the debit card transaction, recorded her PIN, stole her card and handed her back a fake.

“I started freaking out,” she said. “It’s terrifying when they have your debit card.”

It took Kozody about two weeks to get her money back from her bank, and she’s still rattled by the experience.

The day after taking what she thought was a ride in a taxi, Kathryn Kozody of Calgary found out someone had withdrawn almost $2,000 from her bank account. (James Young/CBC News)

“It really felt like an invasion of privacy and a violation to be a victim of this scam,” she said. “I really don’t want it to happen to anybody else.”

The taxi scam isn’t new; Toronto and Montreal have been seeing it for years. But the crime is becoming more widespread.

This summer, police in Calgary, Edmonton and at least five cities in southern Ontario, including Kingston and Ottawa, posted warnings online that they had received multiple reports of the scam.

Police and the Canadian Taxi Association say the fraudsters have a helping hand: with the click of a button, they can purchase a generic — but official looking — taxi roof sign on e-commerce sites like Amazon.

Edmonton Police posted this alert on Facebook in July, warning people about an ongoing taxi scam. The city’s police department says that it received about 10 reports of the scam that month. (Edmonton Police/Facebook )

The taxi association has asked Amazon, by far Canada’s most popular online shopping site, to stop making the roof signs so easily available.

“They do have a moral responsibility to at least sell the signs to individuals that are properly licensed,” said association president Marc André Way.

However, the U.S.-based company continues to sell the product to all customers.

“These lights are legal to sell in Canada,” Amazon told CBC News in an email.

‘Eye-popping’ numbers

The taxi scam has several variations but typically ends the same way: the victim pays with a debit card, then the scammer secretly steals it and hands the victim a similar but fake card. Shortly thereafter, money disappears from the victim’s account.

Ron Hansen, deputy chief of police in Sarnia, Ont., said his department received 12 reports of the scam in July, with one victim losing $9,900.

Toronto police report that since June 2023 the department has received 919 reports of the taxi scam, totalling $1.7 million in losses.

Jessica Chin King of Toronto said after a recent cab ride, she got a suspicious activity alert from her bank. She learned $600 had been withdrawn from her account. (Craig Chivers/CBC)

The numbers are “eye-popping,” said Toronto police detective David Coffey.

“When they do get a victim, they are quick to go right into the bank accounts. They’re quick to empty them out.”

Jessica Chin King of Toronto said just 15 minutes after a recent cab ride, she got a suspicious activity alert from her bank. Turns out, $600 had been withdrawn from her account.

“I was like, ‘Wow, I can’t believe that just happened.’ I was in shock,” said Chin King, whose bank later reimbursed the cash.

She said she too was fooled by the taxi sign atop the car.

“I was in the car with somebody who wasn’t a taxi driver. Anything could have happened,” she said. “I was thankful that it was only my bank [account] that was compromised.”

Taxi light for $35 on Amazon

CBC News bought a taxi sign from Amazon for $35. It has a magnetic strip on the bottom, so it easily sticks to the top of a car.

To power the light, an attached wire can be run through the driver’s window and plugged into the car’s auxiliary power outlet, also known as the cigarette lighter outlet.

The taxi association says licensed taxi drivers typically get their roof signs from speciality suppliers, and they are hardwired to the car — not powered via the cigarette lighter.

“When you see that … it’s obvious that it’s not a legitimate taxi,” said Way, the association president.

Last month, Way sent Amazon a letter on behalf of the Canadian Taxi Association, asking it to stop selling the product.

“This is not a safe, practical way to distribute the trusted ‘Taxi’ signs,” he wrote.

CBC News ordered this $35 taxi sign on Amazon. The attached wire can be run through the driver’s window and plugged into the car’s auxiliary power outlet, while the lights for licensed drivers are hardwired into the vehicle. (Sophia Harris/CBC News)

But Amazon told Way — and CBC News — the signs will remain on its site, because the company isn’t breaking any rules.

“It’s going to be quite difficult, I think, for anyone to stop Amazon from selling a product that is perfectly legal to sell,” said Toronto criminal lawyer, Daniel Goldbloom. “It’s true that these taxi signs can be used to commit scams, but kitchen knives can be used to commit murder — and we don’t stop retailers from selling those.”

But Way isn’t giving up hope.

He says the taxi association also plans to ask other online retailers, such as Temu and eBay, to stop selling the taxi signs and will lobby provincial governments for legislation that regulates the sale of the product.

However, Coffey said he believes the best way to fight the taxi scam is to educate people about it.

“Never, never give another person control of your debit card,” the detective said.

Victims Chin King and Kozody also want to spread the word.

“The more people know, the less likely it is to happen again to somebody else,” Kozody said.

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