taxpayer advocates are warning Canadians that the fight is far from over.
“Canadians fought hard to force Ottawa to back down on its consumer carbon tax, and now the fight moves to stopping the hidden carbon tax on business,” said Franco Terrazzano, federal director of the Canadian Taxpayers Federation.
The federation revealed that the tax cut will reduce the price of gasoline by around 17 cents per litre, while diesel fuel will fall by 21 cents per litre, and natural gas will decrease by 15 cents per cubic metre.
Mark Carney reiterated his claim that he “cancelled” the consumer carbon tax on Tuesday.
The claim, however, is misleading, as a carbon pricing scheme law remains on the books. The Greenhouse Gas Pollution Pricing Act remains in effect and can only be removed by a majority vote in Parliament.
On top of that, the federal government still imposes an industrial carbon tax on companies operating in the oil and gas industry, steel and fertilizer businesses, the automotive industry, the food processing sector, electricity generation, and more.
Carney previously backtracked on an earlier statement, finally admitting that the cost of the industrial carbon tax is passed on to consumers.
Conservative Leader Pierre Poilievre claimed that Carney was only pausing the carbon tax for political reasons until after the election. He termed the phenomenon “the carbon tax con job.”
The CTF highlighted that Carney said he would “improve and tighten” the industrial carbon tax and “extend the framework to 2035” during the Liberal Party of Canada leadership race.
Alberta Premier Danielle Smith celebrated Tuesday’s announcement in a post to X where she was holding up an “Axe the Tax” sign. She highlighted that the tax pause should result in Albertans saving up to $215 in fuel and $480 in home heating annually.
“We expect retailers to pass on these savings in full. We are watching and will hold them accountable so Albertans get the tax break they deserve,” said Smith.
Saskatchewan recently became the first fully carbon tax-free province by eliminating both the consumer and industrial portions of the carbon tax.
British Columbia Premier David Eby announced on Monday that he would remove the B.C. consumer portion of the carbon tax on Tuesday.
Poilievre pledged to remove the provincial carbon tax backstops across the nation.
Terrazzano said Canadians know Poilievre will end all carbon taxes. However, uncertainty remains around what Carney’s carbon tax will cost, with Terrazzano noting that it won’t be zero.
“Carney owes Canadians a clear answer: How much will your carbon tax cost?” asked Terrazzano.