Despite the provincial government maintaining that B.C. residents are paying some of the lowest taxes in Canada, 2012 is shaping up to be costly year for B.C. residents.

This year there will be increases in the costs of Employment Insurance (EI) premiums, Canada Pension Plan (CPP) premiums, health care, electricity, car insurance and gasoline.

The first increase hit the wallets of British Columbians on Jan. 1, 2012, when Medical Services Plan (MSP) health care premiums increased by six per cent or $84 per year for couples, while individuals and those with children will see an increase of 5.8 per cent.

This will be the third year in a row that MSP premiums have increased.

Finance Minister Kevin Falcon defended the increase, saying it is necessary to cover increasing health care costs. He also said that B.C. has one of the lowest tax burdens in Canada, including income taxes, consumption taxes, property taxes, health care premiums and payroll taxes.

The 2012 MSP rate increase will bring the total premium for families to $128 per month.

Also in January, CPP and EI increases by 5.35 per cent or $140 per year.

According to the Canadian Taxpayers Federation, employees will see an increase in the EI rate from 1.78 per cent to 1.83 per cent, an increase in the EI maximum insurable earnings from $44,200 to $45,900 and an increase in the CPP maximum pensionable earnings from $48,300 to $50,100, for a total of $142 in higher employee payroll taxes.

Employers will pay even more with EI rates increasing from 2.49 per cent to 2.56 per cent and corresponding increases in maximum EI and CPP amounts, for a total $164 in higher employer payroll taxes.

鈥淧ayroll taxes are going up because the federal government has yet to tackle our broken EI program,鈥� said Gregory Thomas, Canadian Taxpayers Federation federal director. 鈥淓I payroll taxes are going to go up to keep the fund financed because the program has little to do with an actual insurance program, reflecting the risk of unemployment in premiums.鈥�

In February, basic auto insurance premiums will increase by 11.2 per cent for the average customer. This equates to an increase of $68 per year. The Canadian Taxpayers Federation says, the Insurance Corporation of British Columbia (ICBC) is punishing drivers by raising basic rates and offering savings on optional insurance. "Essentially they are dropping their price on optional insurance, which is open to competition, by six per cent and ratcheting up the basic rate, on which they have the total monopoly, by 11.2 per cent," said Jordan Bateman of the Canadian Taxpayers Federation.

"The B.C. Liberal government should follow their 2011 election promise to introduce greater competition in auto insurance, to create increased choice and reduce motor vehicle premiums. This basic auto insurance monopoly needs to be ended, and ICBC should face full competition from private insurers," Bateman said.

As of April 1, 2012, BC Hydro rates will increase by 3.9 per cent, resulting in an increase of approximately $36 per year to the average residential bill.

BC Hydro say their Power Smart programs and incentives can help customers partially or even fully offset rate increases. They say that smart meters will also provide customers and businesses with access to new tools to manage their own energy use, helping to save money and conserve electricity.

Charles Reid, executive vice president and chief financial officer of BC Hydro said, 鈥淲e recognize that even a modest rate increase has an impact on our customers, which is why we are doing everything we can to become a more efficient company and find cost savings and other  reductions totaling over $800 million over the next three years. We must keep in mind that we have a large, aging system that needs to serve us both now and for future generations. That is why we will continue to invest to maintain and upgrade our electricity infrastructure.鈥�

Pacific Northern Gas (PNG) is reducing its rates in 2012. In filings made to the BC Utilities Commission, PNG will drop its overall residential rate by 1.1 per cent this year. In monetary terms, the decrease for the bundled rate, which takes in the delivery and commodity cost, works out to approximately 20 cents a gigajoule.

Factored in, the 1.1 per cent price reduction for residential users, based on an average use of 68 gigajoules a year, will work out to approximately $13.69 annually.

During July, the province's carbon tax will increase to $30 per tonne and the tax on gasoline will increase from 5.56 cents per litre to 6.67 cents per litre.

Bateman said the series of increases may be more than some families can handle, particularly when combined with increases to federal EI and CPP premiums. He noted that municipal property taxes will also likely increase for many residents this summer.

"There is some hope for 2012 in B.C. The provincial government is launching reviews of every Crown corporation, following the BC Hydro review that highlighted questionable spending decisions and bloated staffing. We (Canadian Taxpayers Federation) think this occurs at several Crown corporations. Hopefully these reviews will result in savings for taxpayers," Bateman added.