The Canada Revenue Agency will audit Saskatchewan for not paying carbon levies on home heating to the federal government.
However, in a post to X on Tuesday, Saskatchewan Premier Scott Moe said that the province is remitting an equivalent carbon tax on natural gas and electricity for residential home heating as the Liberals collect on home heating oil.
“So we consider ourselves paid in full,” said Moe.
The premier added that while the CRA may think it is threatening Saskatchewan, he sees things differently.
“If the Prime Minister thinks he’s going to start sending agencies after provinces that have had unanimous votes in their legislation to pass legislation… Provinces are not subservient governments to the federal government. We have areas of jurisdiction, and we intend on using it,” said Moe.
Saskatchewan’s premier said that Trudeau has his views, but that he’s wrong.
“He may think that he’s going to use federal agencies at his discretion to frighten provinces or frighten entities into acquiescing to his views, and that’s just simply not the case,” added Moe.
Trudeau maintains the carbon tax and related rebate help with affordability and fight against climate change. Trudeau said that eight out of ten families pay less than they receive from the rebate.
However, the Parliamentary Budget Officer showed that families in Saskatchewan will pay $525 more into the carbon tax than they receive in rebates in 2024. This offset will increase to $1,723 for Saskatchewan families by 2030.
“Having an argument with CRA about not wanting to pay your taxes is not a position I want anyone to be in. Good luck with that Premier Moe. CRA is an independent organization that is very, very good at getting money it is owed from Canadians, from businesses and now provinces if it has to,” said Trudeau.
Despite earlier statements from Energy Minister Jonathan Wilkinson indicating that the Saskatchewan residents would forfeit their rebates, Trudeau reversed this position. He said he would continue to issue a rebate of $1,800 to Saskatchewan families, despite Moe not paying levies to the federal government.
Last December, the Saskatchewan legislature unanimously passed a law giving the province exclusive responsibility for compliance with the federal carbon tax on home heating.
After ceasing the carbon tax levy collection in January, Saskatchewan’s inflation fell quicker than predicted. Manitoba saw a similar decline after pausing its fuel tax.