Calculate how much the carbon tax will cost you

how to calculate carbon tax

In the most recent provincial budget, the B.C. Liberal government introduced a carbon tax — one of the first of its kind in North America — as well as a variety of income tax cuts and rebates to help make the new tax "revenue neutral."

In the most recent provincial budget, the B.C. Liberal government introduced a carbon tax — one of the first of its kind in North America — as well as a variety of income tax cuts and rebates to help make the new tax "revenue neutral."

But some B.C. families will come out further ahead than others, depending on how much carbon you use in the form of gasoline, natural gas and home heating fuel.

This simple worksheet allows you to figure out how much your family is likely to spend in carbon tax over the next two years compared to how much money you'll get back from the government in income tax cuts and rebates. To make the calculations, you need to first know how much money each person in your household earns as well as how much fuel you use each year.

To help you calculate your annual fuel consumption, you can use these guides:

How to calculate your annual

gasoline/diesel usage

There are two ways to estimate how much gasoline or diesel you use in a year:

1. Think about how often you fill-up your tank and then estimate how much gasoline/diesel you use in a week. Multiply that by 52 (weeks in a year), then add a bit more if you usually take one or two long road trips each year.

2. Estimate how many kilometres you drive in a year and then multiply that by your vehicle's fuel efficiency. For instance, if you drive 12,000 km a year and your vehicle has a fuel efficiency rating of 8 litres/100 km, you would caculate it like this:

12,000 km (divided by) 100 km = 120

120 x 8 litres = 960 litres/year

How to calculate your annual natural gas/heating fuel usage

Collect a year's worth of natural gas or home heating fuel bills and then add up how many litres (for fuel) or gigajoules (for natural gas) you used last year. It's important to look at a year's worth of bills instead of just estimating based on one month, because most people use a lot more energy in the winter than in the summer.

© (c) CanWest MediaWorks Publications Inc.

Source: www.canada.com

Category: Taxes

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