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Manitoba

Gas and groceries: Families weigh in on Ottawa's carbon tax

The federal governments carbon tax and the rebate will affect each family differently in Manitoba.

The $20-per-tonne carbon tax will result in an approximate cost increase of 4.42 cents a litre for gasoline

Kristen Daniels worries that an increase in gas prices could lead to an increase in prices for food and other goods. (Riley Laychuk/CBC )

The federal government's carbon tax and the rebate will affect each family differently in Manitoba.

The average household will pay $233 more a year as a result of this carbon plan and get a $336 rebate in the first year of the plan.

But some families worry about the effects thetax will have down the line, on things like groceries or other household items, as a result of increases to gas prices.

"It's going to affect a lot of people, especially people that have a low income and a vehicle and need to go places," said Kristen Daniels, who lives in Brandon with her four-year-old son.

Daniels said she spends about $300-$400 a month on groceries and worries her grocery bill could go up, tightening her day-to-day budget even more.

"If my budget works with it, I would only have enough to make it or just get by," she said.

The plan would see Manitobans get the rebate when they file their taxes. Under the plan, Daniels and her son stand to get back about $250 at the end of the year.

"It's going to be costing us money, that's the bottom line," said Andrew Seitz, who was in a local park on Tuesday. "Something else you have to spend money on. If they give a rebate, great. Are you got to get taxed on the rebate? In my bracket, that wouldn't be great."

The $20-per-tonne carbon tax will result in an approximate cost increase of 4.42 cents a litrefor gasoline, 3.91 cents per cubic metre for natural gas and 3.10 cents a litrefor propane, supplementary documents from the government said.

Single adults will be entitled to a $170 refund in the first year, the federal government said, while a second adult in the household will receive $85 back.

Every Manitoban who lives outside Winnipeg will receive a 10 per cent higher rebate because of their higher transportation and energy needs.

"I think most of us who drive wouldn't like it as much, but if there's a rebate to offset it for everybody who drives, that would be important," said Seitz.

With files from Ian Froese.