Tensions are escalating between the federal government and several provinces over the upcoming increase to Canada’s carbon tax on April 1st. The tax on carbon emissions is set to rise from $65 to $80 per tonne as part of scheduled annual hikes until 2030.
The latest opposition comes from Newfoundland and Labrador Premier Andrew Furey, who wrote to Prime Minister Justin Trudeau urging a pause on the imminent nearly 25% tax increase.
Furey cited concerns over punishing inflation and cost-of-living pressures impacting his province’s most vulnerable residents. He requested delaying the carbon tax hike “at least until inflation stabilizes, interest rates lower and related economic pressures on the cost of living sufficiently cool.”
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However, Federal Industry Minister Francois-Philippe Champagne maintains that carbon pricing is effective, claiming that “the plan is working” to curb emissions. He insisted it is “the right thing to do” and “an investment in the future” that will put more money in Canadians’ pockets through rebates.
Related:
- Saskatchewan Sees Inflation Drop Following Carbon Tax Removal on Home Heating
- The Food Professor Says Carbon Tax’s Inflation Impact Four Times Higher Than Initially Reported
The federal finance minister’s office highlighted the Canada Carbon Rebate, arguing it ensures “8 out of 10 Canadians get more back than they pay, with lower-income families benefitting the most.” They positioned emissions reductions from carbon pricing as “the most cost-effective way to protect our communities.”
Opposition is growing across provinces, with Ontario Premier Doug Ford and Saskatchewan’s Scott Moe among the vocal critics. Ford stated the federal government “needs to put a stop to the carbon tax” as “people across Canada are hurting right now from the high cost of living.”
Moe has gone further, refusing to submit owed carbon pricing funds for natural gas, prompting a rebuke from the environment minister who warned “measures will have to be taken” if laws are broken.
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