VANCOUVER: The Canadian Taxpayers Federation (CTF) said the carbon tax, which bumped fuel prices above $1.50 today for the first time ever, will cause even more unhappiness at the pumps.

"The Campbell government's focus on a third term in office seems to have blinded the it to the growing difficulties faced by British Columbians," said Maureen Bader, B.C. Director of the CTF. "Implementing climate change policies such as the carbon tax, especially when gasoline prices are at record highs, hurts family incomes, is detrimental to the economy, and is unlikely to be neutral over the long term."

The 2.4 cent per litre carbon tax on gasoline is but one of the energy price increases the government is putting in place as part of its Climate Action Plan.

"The effect of high gasoline prices on family budgets is but a preview of what's to come if government continues use the global warming dogma to hike taxes in B.C.," said Bader. "The premier's own climate change advisors have written that for a carbon tax to make a difference to green house gas emissions in B.C., the carbon tax on gasoline needs to be closer to 43 cents per litre."

The so-called revenue neutral carbon tax is calculated to raise $1.8 billion in revenue, but be matched by $1.8 billion in tax cuts to keep the level of government revenue the same.

"The last time Canadians were promised a revenue neutral tax, it was called the GST," said Bader. "Like the GST, B.C.'s carbon tax will be costly for consumers and could also become yet another big source of revenue for government."