B.C.’s carbon tax eliminated as of midnight

The B.C. government’s carbon tax will be no more as of 12 a.m. Tuesday, April 1.

The carbon tax rate will be dropped to $0 through legislation, pulling the province in line with the new federal carbon tax rate.

“British Columbians are doing everything they can to reduce their emissions. But people shouldn’t have to choose between climate action and being able to afford their bills,” said Premier David Eby on Monday.

“That’s why we are eliminating the consumer carbon tax, which has become divisive at a time when we need to be united. We will help people with costs and fight climate change by ensuring big polluters continue to pay, encouraging industry to innovate and giving British Columbians affordable options to make sustainable choices,” he added.

As of Tuesday, residents and people in B.C. will no longer pay the consumer carbon tax, removing approximately 17 cents per litre off the cost of gas, and 15 cents per cubic metre off the cost of natural gas in homes and businesses.

It also means that the climate action tax credit will no longer be handed out to eligible British Columbians.

“The carbon tax played an important role here in British Columbia for many years, assisting us in reducing our emissions while our economy continued to grow. It was supported by parties from many different backgrounds in the province,” Eby explained.

“However, the tax has become divisive, and at a time like this, when British Columbians and Canadians need to be pulling together, when there are huge pressures that are coming from the threats out of the Trump White House to employment, to economic growth and to affordability for British Columbians and Canadians, it was important for us to recognize that we needed to act quickly to ensure that British Columbians Were not having to pay the consumer carbon tax.

“It’s not an easy decision, but it’s an important decision for British Columbians,” Eby added.

But Eby issued a warning to utility and gas companies, saying that he has watched the price of gasoline go up in the 10 days since the province made the announcement that the carbon tax was being cancelled.

“We have transparency legislation in place with the Utilities Commission to ensure that they have the authority to shine a light on any gouging that takes place of British Columbians. So, just a little heads up to the oil and gas companies: now is not the moment,” he said. “British Columbians need to see that tax reduction show up at the pump when they fill up. Now is not a time to be playing games with essentials for British Columbians or Canadians as a whole.”

The province says eliminating the tax and the credit will have an estimated $1.99-billion impact for the fiscal year.

“While this is a significant shift for our province,” said Brenda Bailey, Minister of Finance. “We will offset the impact while focusing on growing the economy during these challenging economic times.”

The B.C. government says some provincial programs will be restructured to offset the loss — though it did not say which programs would be selected.

Minister of Energy and Climate Solutions Adrian Dix says the province continues to invest in “practical solutions” including rebates for heat pumps, promoting the adoption of zero-emission vehicles, and creating jobs in the clean-energy sector.

The tax would have cost B.C. families an average of $410 in 2025-2026. The credit, which applied to about two thirds of British Columbian households, would have paid up to $504 each in 2025 — adjusted to income.