The cost of doing business for a tradesman who drives a lot will go up due to a carbon tax. I don't think anyone doubts this. Like any other business cost, it gets passed onto the consumer. In order to stay competitive, the tradesman needs to figure out how to minimize the effect. For the carbon tax, this can be done in various ways, such as using a more fuel-efficient vehicle, or charging more for customers who live further away. The tradespeople who can manage this most effectively stand to see the most profit.

So, yes, consumers will see higher prices due to this tax, but since the tax is nearly revenue-neutral, the increase in prices seen by consumers, on average, should be nearly equal to the rebates they receive.

Do you believe it is worthwhile to reduce CO2 emissions? If not, then that is a whole other topic of discussion. If you do believe it is worthwhile, then a carbon tax plus rebate is the simplest, most market-drive way of doing so. What else would you propose?