Gas prices are about to go up in Canada

2025 will bring some tax changes in Canada, including an increase to the controversial federal carbon tax.

It’s set to rise to $95 per tonne from $80 on April 1, according to the Canadian Taxpayers Federation.

That means for every litre of gas, consumers will be paying 20.9 cents to the carbon tax, which is a rise from the current 17.6 cents, the federation said in a report.

“At that higher rate, the carbon tax will cost a family $14.64 every time they fuel up a 70-litre minivan,” the report said.

The federal government says that most Canadians get more money back in rebates than they pay into the carbon tax.

“However, a Parliamentary Budget Officer report shows the carbon tax will cost the average household between $133 and $477 in 2025-26, even after the rebates,” the federation said.

The federation said that the federal government also charges GST on top of carbon pricing.

“This carbon tax-on-tax will cost Canadians $500 million in 2025-26, according to the PBO,” it said.

“This carbon tax-on-tax cost is not rebated back to Canadians.”

The carbon tax is scheduled to rise each year until it reaches $170 per tonne in 2030.

Meanwhile, a weak Canadian dollar is also having an effect on the price at the pumps.