Trudeau demands Saskatchewan collect carbon tax revenues, remains hush on retaliatory measures

'On the decision by the government of Saskatchewan to not pay its taxes to the federal government … we are a country of laws,' Prime Minister Justin Trudeau told reporters. 'We expect people to obey the law. That's what governments expect of their citizens.'

  • By Alex Dhaliwal
  • March 14, 2024
  • News
Trudeau demands Saskatchewan collect carbon tax revenues, remains hush on retaliatory measures
THE CANADIAN PRESS/Sean Kilpatrick and THE CANADIAN PRESS/Adrian Wyld
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Prime Minister Justin Trudeau remained hush on retaliatory measures Ottawa would take against Saskatchewan over its refusal to collect carbon tax revenues.

“On the decision by the government of Saskatchewan to not pay its taxes to the federal government … we are a country of laws,” Trudeau told reporters on Wednesday.

“We expect people to obey the law,” he added. “That's what governments expect of their citizens.”

Premier Scott Moe and his government are refusing to collect the tax on natural gas in protest of Ottawa only exempting heating oil from the levy last October.

"We’re just asking for fairness," added Crown Investments Minister Dustin Duncan. 

By removing the carbon tax on home heating, Statistics Canada said the province reduced the impacts of inflation. According to the federal agency's Consumer Price Index (CPI), inflation in Saskatchewan fell from 2.7% in December to 1.9% the following month.

"If they are serious about fighting inflation, the federal government needs to remove the carbon tax on everyone and everything," continued Duncan.

Their reprieve is expected to save residents $400 a year on their power bills, he added.

Eight in 10 households in Saskatchewan use natural gas to keep warm. Whereas three percent of homesteads that use heating oil reside in the Prairies.

Environment Minister Steven Guilbeault earlier told reporters his government would take decisive action against Saskatchewan for not collecting carbon tax revenues.

Duncan confirmed on January 2 that his government would hold out on the federal government past February after tabling legislation on November 16.

Moe had until February 29 to submit tax revenues to the federal government but refused to waver in his quest for tax fairness between the provinces.

“If Premier Scott Moe decides that he wants to start breaking laws and not respecting federal laws, then measures will have to be taken,” Guilbeault told reporters on March 5.

“It’s irresponsible and it’s frankly immoral on his part,” he said.

Federal law stipulates that corporations that refuse to collect the carbon tax could face steep fines, and probable jail time — a proposition that Natural Resources Minister Jonathan Wilkinson says is not being considered at this time.

“I don't think anybody's talking about putting people in jail,” clarified Wilkinson in an interview with CBC News.

Saskatchewan’s legislation in the fall provides immunity to executives, with Duncan prepared to take the fall should jail time be on the table. 

“Will you look at criminal actions against the government?” asked the host. “We're going to sit down and have conversations about the different options,” replied Wilkinson.

“At the end of the day, the expectation is that provincial premiers will abide by the law just like every other citizen in this country,” he continued. “That’s not a novel concept.”

“You don't get to pick and choose which laws you abide by and which you don't. But if you break the law, expect to have consequences.”

Justin Trudeau Saskatchewan Canada Carbon Tax Economy Stop the Carbon Tax Steven Guilbeault news Jonathan Wilkinson
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