Tariff 9800 - Environmental surchargesEffective January 1, 2018
Tariff 9800 - Environmental surchargesExpires December 31, 2017
The BC Carbon Tax was increased by 20% effective July 1, 2012 by the BC government. CP has adjusted the surcharge accordingly to coincide with the tax increase.
Carbon taxes were created to help consumers and businesses make more environmentally responsible choices to reduce their use of fossil fuels and related emissions. Accordingly, the purpose of this tariff is to create a transparent method to support the new environmental taxes and levies implemented by provincial governments and have the cost be considered by our customers when selecting a mode of transportation. While the act was intended to be revenue neutral, this is not the case for CP. This new tax directly impacts CP's cost to operate, thus will be passed-through to you, our customer, in a transparent method.
Yes. Tariff 9800 applies to all shipments i.e. all contract and tariff authorities. Specifically, the surcharge in the tariff will apply to all shipments travelling in Alberta and British Columbia. Over the coming years, should other governments implement their own Environmental Taxes or Levies, surcharges to transparently pass-through any new Environmental Surcharges will be added to the tariff.
The AB and BC Carbon Surcharge will be applied to every shipment passing through the provinces, and will appear as a separate line item on your invoice in the same currency as your freight. The rates are based on how far the shipment travels and the type of equipment (car, 40+ foot "FEU" container, or 20 foot "TEU" container).
The surcharge was calculated for fair, transparent, and equitable application to every car and container moving through AB and BC to recover the incremental expense associated with the carbon tax/levy. The surcharge amounts were carefully calculated to recover the projected expense and CP is closely monitoring to ensure we do not over recover this expense.
When a new Environmental Tax is introduced, surcharges to pass-through the new tax in a transparent manner will be added to the tariff.
BC Government's website at www.gov.bc.ca. AB Government's website at