Manitoba reaction to the newest federal carbon tax hike

What the carbon tax update means CTV's Jeff Keele has more on the federal carbon tax hike and what it means for Manitobans.

Drivers filling up are paying more tax on a tank of gas.

As of April 1, the federal carbon tax is increasing to $80 per tonne.

On gasoline, it's now 17.6 cents per litre, a 3.3 cents hike. This means a 50-litre fill will cost an extra $1.65.

Homeowners will see natural gas bills rise to 15.3 cents per cubic metre, 2.9 cents bump. The average bill per year is now $347, a $65 increase.

Canadian Taxpayers Federation Prairie Director Gage Haubruch said the tax needs to go.

"It's unfortunate that the federal government decided to hike that tax again and we hope that they scrap it in the future," said Haubrich.

The carbon price of diesel is also up four cents per litre.

The Manitoba Trucking Association said the organization is not opposed to a tax, but would like to see the revenue collected used to invest in green technology like hydrogen trucks.

President Aaron Dolyniuk said the tax is now costing the industry $294 million per year.

"It increases the cash flow requirements for a trucking company for sure, but at the end of the day the costs goes onto the end consumer," said Dolyniuk.

The federal government said the price on pollution is necessary to curb emissions. It’s a move applauded by environmental activists to tackle climate change

Bethany Daman is from the Manitoba Climate Action Team.

"To de-incentivize Manitobans to use fossil fuels is incredibly important," said Daman.

The hike also means higher rebates.

In Manitoba, a single person can expect $600 back a year, a couple $900, and a family of four $1,200

"It's incredibly important to ensure that we're prioritizing affordability, the one thing with the federal program is that the majority of Manitobans are getting more back," said Daman.

The federal government said if you filed taxes by March 15 your next rebate cheque is slated for April 15, otherwise expect it six to eight weeks after your tax return has been assessed.