Carbon Tax

What is the Carbon Tax/Surcharge?

A carbon tax or surcharge is a fee imposed on each tonne of emissions from fossil fuels, designed to help lower the amount of greenhouse-gas emissions.  As of April 1, 2019, the Government of Canada has introduced a federal carbon pollution pricing system which applies to all provinces and territories that have not implemented their own carbon pricing system including Manitoba, Ontario, Saskatchewan, Nunavut and Yukon and New Brunswick. As a result there will be an added cost for purchases of everyday fuels including gasoline and diesel, natural gas and coal-fired electricity.

Please be advised, the Carbon Tax/Surcharge will be increasing effective April 1, 2021.

What does this mean for the Aviation Industry?

The new federal carbon tax will be imposed on all airlines that operate within the applicable provinces and will be applied to intra-provincial flights.  For Calm Air International, this will mean the carbon tax/surcharge will apply to all routes within Manitoba:

  • Between Winnipeg, Churchill, Flin Flon, Gillam, The Pas and/or Thompson

All new airline ticket reservations made for travel on or after April 1st, 2019, within Manitoba, will now include a carbon surcharge.  Tickets booked for travel between communities within Nunavut will not have a carbong surcharge at this time. The surcharge will also not apply to travel between Manitoba and Nunavut.

What is the Tax being used for?

The Government of Canada has planned to return all direct proceeds collected in Manitoba as follows:

  • Climate Action Incentive Payments paid directly to families and individuals
  • Support for particularly affected sectors (which may include provincial schools, hospitals, indigenous communities, etc.)
  • Supporting reductions in greenhouse gas emissions in Manitoba

More information can be found here.