A Tory motion asking Prime Minister Justin Trudeau to meet provincial leaders to discuss the recent carbon tax hike has passed with support from the NDP and Bloc Québécois.
The non-binding motion asks Mr. Trudeau to meet with the premiers within five weeks to discuss the 23 percent carbon tax increase, which occurred on April 1. It also says the discussion should include plans for the provinces to opt out of the federal carbon tax and “pursue other reasonable ideas to lower emissions.”
Carbon Tax Hike
A carbon tax hike on April 1 from $65 per tonne to $80 per tonne has put a further pinch on consumers, according to the Conservatives. The tax will continue to increase by $15 a year until 2030 when it will be $170 per tonne.
Mr. Trudeau’s government denies the tax hurts Canadians financially, saying that carbon tax rebates put money back in the pockets of most Canadians.
The prime minister said in a letter that he believes premiers would rather “make political hay” out of the carbon pricing program than present an alternative to target greenhouse gas emissions.
However, Conservatives dispute the carbon tax rebates offset the cost for Canadians, citing a 2023 Parliamentary Budget Officer report that noted households would see a net loss between $311 to $911 in 2024–2025, even after rebates were issued.
Carbon Tax Pressure
Mr. Trudeau has been under pressure over the carbon tax since allowing a pause on the tax for home heating oil—a move that largely benefits Atlantic Canada, where 30 percent of households use it.
Several provinces have called on Ottawa to pause the tax on all forms of home heating.
However, Mr. Trudeau said there would be no further carveouts.
On Jan. 1, Saskatchewan stopped collecting the carbon tax on home-heating natural gas, and has since decided not to remit it to the federal government.
Ontario Premier Doug Ford has said that Mr. Trudeau will lose the next federal election if he doesn’t reconsider carbon tax hikes.
