The government of Ontario has introduced a new green tax that will cover the $53 million of the Liberal government’s new conservation and green energy program. It is expected that hydroelectric bills will increase $4 per year.
Toronto, Canada – In order to pay for the province’s new green energy initiative, Ontario consumers will now be given a new green tax, which will increase hydro bills by an extra $4 per year, according to 580 CFRA. The Ontario government is about to implement the new green tax that should be approved by April 15.
The new revenue would allow the government to provide home energy audits and a program that helps corporations, both commercial and industrial, to switch to solar power. Ontario Energy and Infrastructure Minister Brad Duguid said the conservation programs will assist in eliminating coal-fired power plants by 2014, reports the Toronto Star.
“You’re looking at four dollars a year, which is a bargain when you compare it will the alternatives, which is investing much more than that to build nuclear or other types of infrastructure,” said Duguid.
The provincial Minister further added that the latest initiative is not a tax but part of a way to introduce alternative green energy sources under the Green Energy Act, which was passed by Queen’s Park last year around this time.
However, the Liberal government is facing fierce criticism from the opposition, reports CP24. Progressive Conservative Leader Tim Hudak has labeled the latest legislation as a “sneaky tax grab.”
“This is just the latest in a long series of tax and fee grabs hitting Ontario families through their hydro bill alone will be used to create another Liberal slush fund” for pet initiatives,” said Hudak.
Another critic, Progressive Conservative energy critic John Yakabuski, said the tax is a hidden tax, even if it’s really low, “They’re just going to be dealing with the implementation of the HST, which is going to add 8 per cent onto those hydro bills,” reports CTV Toronto.
This comes as Ontario will see the new Harmonized Sales Tax this summer that will raise the price of one out of every four items in the province.