The Province is announcing that B.C.’s public auto insurer will provide a one-time relief rebate of $110 to customers to ease the financial burden of increased gas prices caused by the invasion of Ukraine by Russian forces.
This rebate will total more than $395 million and comes at time when the global increase in gas prices and other cost pressures have affected day-to-day life for British Columbians.
Critics immediately pounced on this announcement, as it really only buys one tank of gas for the average consumer. Many point to the problem of addressing fuel company pricing and government taxes. In particular, Carbon Taxes.The Province was quick in ensure that EV owners would also receive the cash.
“People are facing increased costs through no fault of their own, but as a chain reaction that started with Putin’s illegal war in Ukraine,” said Premier John Horgan. “As a result of our work to fix ICBC, we’re in a position to put money back in people’s pockets to help a little with these increased costs.”
Most ICBC customers with a basic auto insurance policy during the month of February will be eligible for the $110 relief rebate. Most commercial customers will receive a rebate of $165 because they generally incur higher expenses.
ICBC is in a position to provide the relief rebate as a result of its forecast annual net income of $1.9 billion for the fiscal year ending March 31, 2022. The remaining income will be reinvested into ICBC’s capital reserves to ensure rates remain affordable for the long term.
“This rebate is going to help a lot of people in this province,” said Mike Farnworth, Minister of Public Safety and Solicitor General. “This is another opportunity to put money back in the pockets of the hardworking people who make this province a great place to live.”
Eligible ICBC customers can expect to receive their rebate in May if they are registered for direct deposit with ICBC or as a refund to their credit card. All other customers will receive cheques in June.
The Canadian Taxpayers Federation is urging B.C. Premier John Horgan to scrap the provincial carbon taxes to save money at the gas pumps, instead of merely rebating ICBC fees to drivers.
“Why is Horgan just handing drivers back their own ICBC money, when he knows that one of the main problems causing pain at the gas pumps in B.C. is the carbon taxes ?” asked Kris Sims, B.C. Director of the Canadian Taxpayers Federation. “ICBC happens to have extra money at this moment and it should be paid back to us, but that’s like trying to pay your rent with cash you found in an old jacket.”
Taxpayers have been hit with record-smashing prices at the gas pumps with a litre of regular costing more than $2 in the Lower Mainland and Victoria.
B.C. has two carbon taxes. The first is slated to go up to 11 cents per litre on April 1, while the second is a government fuel regulation that makes gasoline cost on average 17 cents more per litre. Combined, the two B.C. carbon taxes cost about 27 cents per litre.
In Metro Vancouver, about 73 cents of the cost per litre of gasoline is taxes, including carbon taxes, excise taxes, a transit tax and sales tax.
“These carbon taxes cost us about $20 extra every time we fill up a minivan,” said Sims. “While the government can’t stop unrest overseas or immediately reverse the effects of its anti-pipeline attitude that’s strangling supply to the region, the government can scrap these carbon taxes and provide instant relief to working people.”
