Newfoundland premier pens second letter to Trudeau on opposition to recent carbon tax hike

Dated for August 15, Premier Andrew Furey remains concerned about the 'detrimental and disproportionate impact the regulations are having, 'and will increasingly have' on residents.

Newfoundland premier pens second letter to Trudeau on opposition to recent carbon tax hike
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Liberal-led Newfoundland and Labrador has once again expressed dissatisfaction with carbon tax increases and the imposition of clean fuel regulations, otherwise referred to as a 'second carbon tax.'

Premier Andrew Furey penned a second letter to Prime Minister Justin Trudeau, imploring him to reverse the tax hikes and pause the regulations amid ongoing financial uncertainty for residents.

Dated for August 15, Furey remains concerned about the "detrimental and disproportionate impact" the regulations are having "and will increasingly have," as first reported by VOCM.

In his first letter to the prime minister, he wrote: "I take great exception to force this into a dichotomous issue 'either you believe in exactly what we say, or you don't believe in climate change.'" 

"That's completely illogical, it's a false dichotomy, it's a false dilemma, and it's as insulting to us as it is simplistic."

According to the Maritime premier, both carbon taxes increase costs for locals while fuelling their vehicles at the pumps, which requires a 'modification' of the federal tax to address Newfoundland's 'unique situation.'

While Environment and Climate Change Canada (ECCC) predicts a price increase at the pumps of 6 to 13 cents per litre for gasoline by 2030, the Parliamentary Budget Office (PBO) expects prices to increase by 17 cents.

The first carbon tax will add 37 cents to a litre of gas and diesel by fiscal year 2030/31.

Furey writes that while his government is committed to combatting 'climate change' and transitioning to a 'net-zero' economy, he urged careful consideration of how inflation and the federal climate policies impact household finances.

The PBO said a low-income family from Newfoundland and Labrador would receive $689, with the province's highest earners paying $4,872 in carbon taxes by fiscal year 2030/31.

By 2030, they estimate the net cost of the carbon tax will be $1,316 for the average Newfoundland household.

Furey adds that an orderly energy transition with mass support "depends on [considering the costs of climate policies]."

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