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Canadian indirect tax news: Federal carbon backstop

Published on: Mar 19, 2019

Pricing carbon is one of the strategies by which Canada plans to achieve a low-carbon economy. Provinces and territories that have not designed their own carbon pricing system or have put systems in place that do not meet the benchmarks set by the federal government will be subject to the federal “backstop” scheme. The Greenhouse Gas Pollution Pricing Act, 2018 (the Act) allows the federal government to designate any province or territory as a “listed province” and apply the backstop in that jurisdiction.


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