Canada rebrands carbon tax rebates to fend off opposition attacks

OTTAWA (Reuters) - The Canadian government, seeking to defend its signature carbon tax from opposition attacks, on Wednesday announced a new branding strategy to underscore that the policy means most people receive rebates.

The tax on fossil fuels, in effect since 2019, is intended to accelerate a switch to clean energy. Canadians receive quarterly rebates to make the measure revenue neutral but officials admit this fact is little understood.

The payments will henceforth be called the Canada Carbon Rebate rather than the Climate Action Incentive Payment.

"The previous name was a bit difficult to understand, even for many people to remember. This will likely make it easier," Environment Minister Steven Guilbeault told reporters.

Ottawa says 80% of Canadians receive more back from the rebates than they spend on fossil fuels.

Polls show the ruling Liberals are badly trailing the official opposition Conservatives, who have promised to "axe the tax" on the grounds it is making life more expensive.

Last October Prime Minister Justin Trudeau offered a three-year carve-out for home heating oil under pressure from Liberal lawmakers on the Atlantic coast.

(Reporting by David Ljunggren; editing by Diane Craft)