Saskatchewan will not remit the federal carbon tax on natural gas to Ottawa, the province’s energy minister announced on the due date of the payment.
The province stopped collecting the tax on natural gas from homeowners Jan. 1, and had until the end of this month to submit the money.Mr. Duncan said that the government did not take the decision 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.”
Mr. Duncan said Saskatchewan households will save approximately $400 by not having to pay the carbon tax on home heating.
“It’s also about fairness in our government refusing to allow [Prime Minister Justin] Trudeau to treat Saskatchewan people like second-class citizens,” he said.
In response to Saskatchewan’s move, the federal Natural Resources Minister Jonathan Wilkinson said on Feb. 29 that the province’s residents won’t get a carbon tax rebate.
Saskatchewan decided not to collect the carbon tax on home heating bills after the federal government announced a pause on the tax for home heating oil, a move that largely benefits Atlantic Canada. Despite calls from other provinces to pause the tax on other home heating methods, the prime minister said there would be no additional carve-outs.
Mr. Trudeau said he made the decision to pause the tax for three years to allow Canadians time to switch to electric heat pumps.
