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Quebec slaps carbon tax on diesel fuel

MONTREAL, Que. -- Quebec is increasing the tax on diesel fuel sold in the province by 0.9 cents per litre beginning...


MONTREAL, Que. — Quebec is increasing the tax on diesel fuel sold in the province by 0.9 cents per litre beginning today as part of its plan to tackle greenhouse gas emissions.

The so-called green tax is aimed at helping the province meet its Kyoto targets. The fuel tax hike also applies to gasoline (0.8 cents) and will generate about $200 million per year, which will be used to finance green projects, the province has announced. The tax is levied against energy companies and its not yet clear whether it will be slapped onto pump prices.

The new tax will generate about $36 million on diesel fuel alone.

– With reports from the Canadian Press


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