April 1, 2025

B.C. Ditches the Carbon Tax—What That Means for Small Business Owners

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As of April 1, 2025, B.C. has officially scrapped its consumer carbon tax. That means lower prices at the pump and on your heating bills—about 17 cents less per litre of fuel and 15 cents less per cubic metre of natural gas. For small business owners, that’s real savings you’ll feel right away.

What’s Changing?

The carbon tax has been a cost baked into everything from deliveries to heating your storefront. With it gone, businesses across the province—especially in transportation, hospitality, and retail—can expect some welcome breathing room in their budgets.

That said, the Climate Action Tax Credit is also being phased out, with the last payment landing in April. So if that credit was part of your planning, it’s time to take note.

Big Polluters Still Pay

B.C. isn’t tossing out climate accountability altogether. Big industrial polluters are still on the hook through the province’s output-based pricing system. The idea? Keep the pressure on major emitters without piling it onto small businesses.

What Should You Do With the Savings?

If you’re in a position to, think about using some of those savings to future-proof your business—maybe by investing in energy-efficient upgrades or exploring cleaner alternatives. Not only can it trim your long-term costs, but customers are paying more attention than ever to how businesses treat the planet.

Bottom Line

This move takes some pressure off the little guys while keeping the climate conversation going. Less tax, more flexibility—and a chance to reinvest in smarter, more sustainable ways to run your business.