Achi news desk-
The war of words over the cost of pollution reached a new level this week, with Prime Minister Justin Trudeau warning Saskatchewan Premier Scott Moe that the Canada Revenue Agency will be knocking on his door, seeking to move the province out of federal custody after he halted tax collection. The carbon on natural gas or heating the house.
“Good luck Prime Minister Moe, the CRA is an independent organization that is very, very good at getting money it owes Canadians from businesses, and now from the provinces, if needed,” Trudeau told reporters at a news conference Wednesday after being sworn in. that Saskatchewan residents will still receive the carbon refund in Canada.
In October 2023, Prime Minister Mo announced that his government would stop collecting and passing on the carbon levy on certain forms of energy, after the federal government introduced a three-year exemption for home heating oil. This fuel is mainly used in Atlantic Canada and is seen as a political choice for this part of the country.
In February, the Saskatchewan government confirmed it would be recognized as the individual supplier of natural gas by the Canada Revenue Agency. By not collecting and remitting the carbon tax, the county is breaking the law and risks fines or legal consequences.
In an email to CTV News in response to Trudeau’s warning, Moe’s office said the province had “transferred the appropriate amount of carbon tax to the federal government.”
“We will appeal any action by the CRA to levy an additional carbon tax and will defend Saskatchewan’s interests as required,” Premier spokeswoman Julie Legott added in an email.
The Canada Revenue Agency did not respond to CTV News’ request for comment on how the organization intends to collect the money from the province, but it appears there is another way the federal government could call the province.
Buried on page 408 of the federal budget is a proposal to amend the Greenhouse Gas Pollution Pricing Act to give federal officials, such as the Secretary of Internal Revenue, the authority to tell the public when a county is not complying with the federal pollution pricing system.
For months, several governors have voiced their opposition to the federal price on pollution being imposed on those jurisdictions that did not have them, or whose plans did not meet the federal government’s standard. In light of the recent Mo-Trudeau showdown, questions have been raised about whether other provinces could follow suit and stop charging the carbon levy on home heating, and still see their residents get reimbursed.
CTV News posted a nationwide network to check with the provinces — Alberta, Saskatchewan, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador — that have asked the federal government to suspend or remove the federal carbon tax. We learned that not everyone can stop collecting the federal withholding tax. Here’s why.
Alberta
“We don’t have that option,” Premier Danielle Smith said in October 2023 when asked if she would follow Premier Moe.
Alberta cannot because that province has a private energy market, meaning private operators pay the tax directly to the federal government. Smith said she would not ask private sector operators to disobey the law.
“Alberta stands with Saskatchewan and Premier Scott Moe in their fight against the unfair and unconstitutional region-specific and fuel-specific application of the carbon tax,” Premier Smith’s press secretary Sam Blackett wrote in an email.
Ontario
The province of Ontario is in a situation similar to that of Alberta where home heating energy is provided by private companies. Premier Doug Ford’s communications director told CTV News that Ontario would never ask private companies to break federal law.
“The federal government should just do the right and fair thing and repeal the carbon tax across the board,” said Caitlin Clark.
Nova Scotia
Nova Scotia Environment and Climate Change Minister Timothy Hellman strongly opposes the federal pollution price, but noted that, as in other provinces, the levy is passed on by private natural gas companies. As a result, the province has no role in collecting the carbon tax on natural gas.
In a statement, Hellman pointed to his government’s greenhouse gas reduction target contained in a policy called “still better than a carbon tax plan.” Among other things, the policy calls for phasing out coal-fired power generation and providing 80% of Nova Scotia’s energy through renewable energy by 2030.
Prince Edward Island
While Prime Minister Dennis King would oppose the federal carbon tax, his government will not follow Prime Minister Mo’s lead.
In a statement to CTV News, Emily Bello of the Premier’s office said, “This is not something that PEI is considering at this time.”
Newfoundland and Labrador
The lone Liberal prime minister to call for an end to the carbon tax reiterated that position earlier this month in a letter to Trudeau. Andrew Fiore wrote, “We need a constructive approach to decarbonizing our environment without placing the burden on individual families who simply do not have viable alternatives.”
When asked if Newfoundland and Labrador would follow Saskatchewan’s lead, Fury’s communications director Meghan McCabe said in a statement to CTV News, “Premier Fury has been clear that a carbon tax is not the right tool to mitigate the impact of climate change at this time in our province, and continues to request from the federal government to adjust its policy.”
New Brunswick
Officials in Premier Blaine Higgs’ office did not respond to CTV News’ request for comment.
