Quote:
Originally Posted by Regorium
This is incorrect. You get the refund first, THEN the tax comes in. For example, we are all going to get an increased rebate amount on April 15, even though the tax only increases on April 1. The rebate would cover April 1 to July 1, meaning the rebates comes in before 85% of the actual spend.
As to your question as to why it has to be this way, rebates are an accepted way to turn a generally regressive tax policy (which appears to be your concern) into one where it's progressive - especially when the rebates are universal like the carbon tax rebate.
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But why charge gst in the carbon tax on your gas bill at all? Just doesn’t make any sense to me.
Also I’m pretty certain we started paying the carbon tax before any refunds were issued…maybe I’m wrong.