One of the bigger concerns about the federal government's carbon pricing strategy was that farmers would be charged a tax on their farm fuel. Much to the relief of many, the government announced that both gasoline and diesel fuels for on-farm use will be exempted from the carbon tax.
However, the exemption will not apply to propane, or natural gas.
The carbon tax is to begin in April next year, and will start at twenty dollars per tonne of greenhouse gas emission. It will then rise by ten dollars per year, until it hits fifty dollars per tonne by the year 2022.
The federal government says ninety per cent of the revenue collected from the carbon tax will be given back to Manitobans in the form of rebate cheques. Families outside of Winnipeg will receive ten per cent extra. The remaining ten per cent of the revenue collected will go to businesses, schools, hospitals, and other organizations.
