Carbon tax will start July 1, 2008 at a rate of $10 per tonne of associated carbon, or carbon‑equivalent, emissions. That works out to about 2.4 cents a litre at the gas pump and 2.8 cents a litre for diesel and home heating oil. Leading economists and scientists agree: Seeing that cost, and making it real, will give us new incentives to change the habits that created global warming in the first place.

Let me get this clear. Today we pay say, $1.20 per litre, and with the tax it will be $1.224 per litre? Am I correct?

Yes, for every litre of gas an additional 2.4 cents will be charged as the carbon tax.

And why do you think this is the right thing to do?

Because we have to act on the environment. The green house gases …

Yes, yes, that I understand. What I am struggling to get is those two numbers. Why do you think price $1.20 does not work as incentives to change people’s habits, but $1.22 does? Do you have any scientific study proving that idea?

Of course, not. It is not about the exact price people paying at the gas stations. We believe that the carbon tax will be an additional reason for people to start thinking green. And do not forget, the carbon tax is absolutely revenue neutral, so all the money will go back to the people and the corporations.

Does that mean I can request back those 2.4 cents per litre right at the gas station?

No, Kevin, it does not work this way. It means every dollar raised will be returned to the people of B.C. in the form of lower taxes. The general corporate income tax rate will be reduced from 12 per cent to 11 per cent and, over the next three years, we expect it to fall to 10 per cent — on par with the lowest corporate tax rates in the country. That puts B.C. on track, by 2012, for a total combined corporate tax rate — the federal plus the B.C. rate — of 25 per cent… the lowest among the world’s major industrialized economies, and 10 points lower than the U.S. federal rate.

Right, lower taxes. That’s what I wanted to ask you about. Firstly, introducing new tax to cover reduction in existing one is not lowering taxes at all. Secondly, 25 per cent corporate tax will place Canada into the 21st position in the world. In order to be in the first ten we need to reduce it to at least 17%. So can we really reduce taxes to 17% and can we do it now, not in ten years?

17% combined? I do not think so. In order to get there we would have to set the carbon tax in the range of $30-$50 per tonne or even more.

Minister, you don’t get the concept of tax reduction right. Tax reduction means less taxes, not less some taxes but more other taxes. Do we have any chance here?

I don’t know, Kevin… theoretically… if we increase the GST…