The Yukon Party predicts the federal carbon pricing plan will be a “bureaucratic nightmare,” and says the Liberals should work to negotiate exemptions for the Yukon.

“The administration of this tax will come with increased bureaucracy and costs,” Yukon Party interim Leader Stacey Hassard said in an email to the Star early this afternoon.

“Further, not only will Yukoners be forced to pay higher costs, but the resulting paperwork and administration will make life more difficult for the business community.”

Details of the federal government’s proposed carbon pricing “backstop” were released Thursday, including the tax rate per litre of various fossil fuels. The plan will come into force next year.

The backstop will see a levy on carbon emissions starting at $10 per tonne in 2018, rising to $50 in 2022.

At the pumps, this boils down to an additional 2.33 cents on a litre of gasoline in 2018, rising each subsequent year to 11.63 cents in 2022.

The tax on diesel, a primary home heating and truck fuel, will start at 2.74 cents per litre in 2018, and rise annually to 13.69 cents in 2022.

The propane tax will start at 1.55 cents a litre in 2018 and increase to 7.74 cents in 2022.

The tax on jet fuel will rise from 2.49 cents per litre in 2018 to 12.91 cents in 2022.

The federal government will review its carbon pricing plan in five years.

Shortly after Ottawa released a technical paper Thursday on its pricing plan, the Yukon Party sent out a statement, once again blaming the premier for imposing a carbon tax on Yukoners.

“Today’s announcement confirms what the official Opposition has been saying all along – every Yukoner will end up paying more as a result of Premier Silver’s carbon tax scheme,” said MLA Scott Kent.

Of course, the backstop is a federal policy, and it will be applied in every jurisdiction that doesn’t develop its own plan to price carbon at an equal rate, or reduce emissions at an equal level.

Alberta and B.C. already have a carbon tax, and Ontario, Quebec and Nova Scotia are opting for a cap-and-trade system.

All three territories, Atlantic Canada and Manitoba, have agreed to some form of carbon pricing.

Saskatchewan is the only jurisdiction that remains steadfastly opposed to any kind of carbon levy, with Premier Brad Wall calling the technical paper “a ransom note,” and threatening legal action.

Revenues generated through the carbon tax will be returned to the province or territory of origin, but Canada says it is open to feedback on how exactly this will be done.

Ottawa also said it is considering bypassing provincial and territorial middlemen, and returning revenues directly to people and businesses.

Premier Sandy Silver has promised that every dollar of the new tax will be returned to Yukoners in the form of rebates.

Hassard, however, isn’t so sure Silver will be able to deliver on this pledge.

“To date, the premier has provided no details on how this will work or how he will even track how much extra each Yukoner pays,” he said.

“If in fact Ottawa is delivering the rebates, then we have no assurance that every Yukoner gets all their money back.”

Yukon Party MLA Wade Istchenko asked for details on the rebate in the House last month.

“Will Yukoners receive the rebate cheque? Will all Yukoners receive the same amount of rebate? How much paperwork will Yukoners have to go through to get their rebate?”

British Columbia, which has had a carbon tax since 2008, offers a special income tax credit to low-income earners and families to help offset the burden of the province’s carbon tax – might the Yukon follow suit?

“Every Yukoner is going to be paying more for everything, and with only seven months until the tax is to be implemented, they can’t afford to not know how they’ll be getting a rebate,” said Hassard.

The Yukon is currently working with Canada on a study of the impacts the federal plan will have on northern economies and vulnerable groups, said Eric Clement, a spokesperson for the Department of Finance.

The study will be complete this fall.

Commercial carriers (trucks, trains, buses etc.), whether transporting freight or people, will be required to pay a carbon levy on any fuel used in a backstop region, even if it wasn’t purchased in that jurisdiction. The carrier will register with the Canada Revenue Agency, and report fuel used in backstop zones.

The government will reimburse the carrier for fuel purchased in a backstop zone, but used outside that zone.

There are some exceptions to the federal backstop.

For example, there will be relief for certain farming activities, on fuel exported from a backstop region, and on biofuel blends.

Silver was not available for comment today on the carbon tax.