Tas govt welcomes carbon tax scrap

The scrapping of an "unfair" carbon tax has been welcomed by the Tasmanian government which says households will save some $160 a year.

Tasmanians have been spared from an "unfair" carbon tax which has cost the state more than $100 million.

That's according to the island's Liberal government, which welcomed federal parliament's decision to scrap the impost on Thursday.

It estimates the move will save households about $164 a year and small businesses some $136 annually.

"This was an unfair tax paid for by Tasmanians who use carbon-free energy generated by hydro dams and wind farms," Energy Minister Matthew Groom said.

During the two-year life of the carbon tax, it cost Tasmanians $100 million, he said.

Energy provider Hydro Tasmania, the nation's largest producer of renewable energy, was a profitable outfit prior to the introduction of the carbon tax and would continue to be so without the levy, Mr Groom said.