Saskatchewan Premier Scott Moe is reminding residents that there is no more federal carbon tax on home heating starting on Jan. 1.
“Saskatchewan families can say so long to paying the carbon tax on home heating beginning on Monday,” Mr. Moe said in a Dec. 30, 2023,
post on X.
In the new year, both provincial Crown corporations SaskEnergy and SaskPower will no longer be collecting the federal carbon tax on home heating bills, a Dec. 28, 2023, government
news release said.
Mr. Moe’s decision comes after the federal government
announced a three-year pause on the federal carbon tax for heating oil, which largely benefits Atlantic Canada, where
30 percent of households use the oil.
The announcement, made in October 2023, was to give extra time to Canadians to switch to electric heat pumps, according to Prime Minister Justin Trudeau.
Five provinces have called on Mr. Trudeau to pause the tax on all forms of home heating.
It began with the
finance ministers in Nova Scotia, New Brunswick, Ontario, Saskatchewan, and Alberta issuing a joint statement on Nov. 3, 2023, saying Ottawa’s decision to remove the federal carbon tax “on certain heating fuels in some provinces and not others is creating further jurisdictional imbalances.”
“We urge the federal government to eliminate the carbon tax to ensure fairness and ease financial pressure on Canadians,” their
statement said.
Then on Nov. 10, 2023, the
premiers of those provinces sent a joint letter to the federal government calling for “fair and equitable” treatment and asking Mr. Trudeau to remove the tax from all forms of home heating.
“By singling out Atlantic Canadians with this relief [on home heating oil], it has caused divisions across the country,” the premiers wrote.
“We are calling on the federal government to do the right thing and treat all Canadians fairly by removing the federal carbon tax from all forms of home heating. This would help address the significant affordability concerns faced by families from coast to coast to coast,” said their
letter posted on social media.
Saskatchewan Measures
However, Mr. Trudeau said there would be
no further exemptions on the carbon tax.
“There will absolutely not be any other carve-outs or suspensions of the price on pollution,” he told reporters on Oct. 31. “This is designed to phase out heating oil.”
On Nov. 16, 2023, Mr. Moe’s government
introduced a bill that the provincial government says would allow the province to stop collecting the federal carbon tax on natural gas and provide legal protection for Crown corporation SaskEnergy.
People and corporations that intentionally fail to pay the carbon tax can be fined up to 20 percent of the charge that should have been paid, according to the
Greenhouse Gas Pollution Pricing Act. They also have to pay a separate fine of up to $1,000. The act says people may also receive up to six months of jail time.
The legislation passed by the provincial legislature puts the responsibility on the provincial government rather than the crown corporation executives.
Energy and Natural Resources Minister Jonathan Wilkinson called Mr. Moe’s decision “irresponsible.”
“If the government of Saskatchewan wants to create that kind of a barrier, then we will have to figure out how best to respond,” he said.
“I don’t think it’s a reasonable thing for any provincial premier to be saying ... they’re going to flout the laws of land ... that’s just an irresponsible position to take.”
On the same day Mr. Moe announced removal of the levy from electricity, Mr. Trudeau told reporters that he expected provinces to follow the law.
“Canada is a country of the rule of law and we expect all Canadians to follow the law—that applies to provinces as much as it applies to individual citizens,” he said at an unrelated news conference in Ajax, Ont.
Opposition Supports Cutting Carbon Tax
Mr. Moe’s decision to stop collecting the carbon tax on home heating sources received support from the provincial opposition.The Saskatchewan NDP voted for the bill that allowed Mr. Moe’s government to stop collecting the tax as of Jan. 1, 2024.
“Directing SaskEnergy to not collect the federal carbon tax is an extraordinary but justified measure if a deal to restore fairness can’t be found,” NDP leader Carla Beck said during an Oct. 30, 2023,
debate in the legislature.
The Saskatchewan government said the carbon tax would still be on utility bills received in January, as they include heating used in December 2023.
“The federal carbon tax will be zero billed, appearing as both a charge and a reversal credit, on bills for usage on and after January 1, 2024,” the
news release said.
Mr. Moe’s government says removing the carbon tax will save the average Saskatchewan families about $400 in 2024.
The Canadian Press, Reuters, Noé Chartier, and Matthew Horwood contributed to this report.
