Saskatchewan Threatens to Halt All Carbon Taxes if Ottawa Withholds Province’s Rebates

Saskatchewan Threatens to Halt All Carbon Taxes if Ottawa Withholds Province’s Rebates
Saskatchewan Premier Scott Moe speaks to reporters at the Saskatchewan legislature in Regina on Oct. 10, 2023. (The Canadian Press/Heywood Yu)
Chandra Philip
3/1/2024
Updated:
3/1/2024
0:00

Saskatchewan Premier Scott Moe says his province could stop paying Ottawa’s carbon tax entirely if the federal government refuses rebates to province residents.

Mr. Moe’s comments were in response to the federal natural resource minister saying Saskatchewan residents will not receive a carbon rebate if the province continues to withhold carbon tax for home heating.

Natural Resources Minister Jonathan Wilkinson said the decision by the Saskatchewan government will hurt lower-income residents who benefit from the federal rebate.

However, Mr. Moe said the move was to punish his province for asking to be treated fairly.

“On what basis would they cancel the entire rebate, especially when they are still providing carbon tax rebates to families in Atlantic Canada,” he asked in an X post.

“If the Trudeau government follows through on this threat, they will once again be penalizing Saskatchewan families for wanting to be treated the same as other Canadians.”

The Epoch Times reached out to Mr. Wilkinson’s office but did not immediately hear back.

Mr. Moe’s government stopped collecting the carbon tax on home heating after Prime Minister Justin Trudeau announced a pause on the tax for home heating oil, a move that largely benefits Atlantic Canada.

Mr. Wilkinson previously said Mr. Moe’s decision was reckless because the law to impose a carbon levy was upheld by the Supreme Court of Canada.

He said it’s difficult to provide rebates when no money is being collected.

Mr. Moe’s government stopped collecting the carbon tax on natural gas in the province as of Jan. 1.

Saskatchewan’s Minister of Crown Corporations Dustin Duncan announced on Feb. 29 the province would not remit the carbon tax for home heating. He said that the decision was not taken lightly.

“We recognize that it may come with consequences,” he said. “This is why in December of last year the Saskatchewan legislature unanimously passed a law that gives our government, and me as Minister, exclusive responsibility for compliance with the federal carbon tax on home heating.”

Legislation was introduced in the province in November 2023 that appointed the provincial government as the sole registered distributor of natural gas in Saskatchewan. The move protects employees at SaskEnergy from any sanctions the federal government may impose for failure to remit the tax.

Other provinces have asked for the extension to encompass other forms of home heating, but Mr. Trudeau has refused.

The carbon tax was first introduced in 2019 and applies to provinces and territories that do not have their own carbon pricing systems. It currently costs $65 per tonne of emissions and will increase by $15 annually until 2030.
The Canadian Press contributed to this report.