Alberta Premier Danielle Smith Calls on Feds to Cancel Carbon Tax, Pause Fuel Tax

Alberta Premier Danielle Smith Calls on Feds to Cancel Carbon Tax, Pause Fuel Tax
Alberta Premier Danielle Smith holds a press conference in Edmonton on Oct. 11, 2022. (Jason Franson/The Canadian Press)
Rachel Emmanuel
11/9/2022
Updated:
11/9/2022
0:00

EDMONTON—Alberta Premier Danielle Smith is calling on Prime Minister Justin Trudeau to cancel the federal carbon tax and pause the federal fuel tax.

She made the comments in a letter addressed to the prime minister on Wednesday, just one day after winning a seat in the Alberta Legislative Assembly.

Smith said Alberta’s United Conservative Party (UCP) government has taken action to address the cost of living crisis while the federal government’s “imprudent policies” are contributing to inflation.

“Canadians need governments to take immediate action to address this affordability crisis,” she wrote.

“An immediate and simple step your government should take is to cancel the planned increases in the federal carbon tax. ... In point of fact elimination of the carbon tax entirely, along with temporarily pausing federal fuel taxes, would assist millions of Canadians to better cope with this inflation crisis.”

Under former premier Jason Kenney, the UCP suspended its 13 cent-per-litre fuel tax on April 1 as gas prices skyrocketed. That tax was partially reinstated in October, to 4.5 cents per litre on gas and diesel, as oil prices relaxed.

In her letter to Trudeau, Smith pointed to the Alberta government’s efforts, which also include electricity and natural gas rebates. The “answer” to cutting emissions is pursuing technological advancement and economic growth, she argued.

“We are proud of the action our province has taken in this regard.”

Alberta has long called on Ottawa to abandon its carbon and fuel tax.

In a March joint letter with Saskatchewan Premier Scott Moe and Manitoba Premier Heather Stefanson, Kenney requested the federal government drop its planned carbon tax increase to $170/tonne. The demand went unmet, and the increase took effect April 1.

Then in June, former finance Minister Jason Nixon called on Ottawa to drop its fuel tax—a request the Alberta NDP declined to join.

In a speech to Albertans after winning the Brooks-Medicine Hat byelection on Tuesday night, Smith said another fuel tax holiday was coming. The new premier said her government will take “unprecedented” action over the next few months to help Albertan families through the cost of living crisis.

She also said voters can choose the Alberta NDP “that increasingly takes their orders from Jagmeet Singh and Justin Trudeau at the federal level,” or “can choose a united, confident, and energized UCP—a UCP that will keep Alberta strong and free.”

“We are going to deliver more and better jobs, accessible health care, and a lower cost-of-living for you and your family,” she said.