SaskEnergy minister maintains carbon tax slash shouldn’t affect rebates

Minister Dustin Duncan, representing SaskEnergy, maintains Premier Scott Moe’s transfer to slash the carbon tax carried out by Prime Minister Justin Trudeau gained’t have an effect on rebates in Saskatchewan. 

Duncan, the minister of Crown Investments Company who’s accountable for all main Crown firms, mentioned although SaskEnergy will not be gathering carbon tax from residential prospects, residents ought to nonetheless get an honest carbon rebate. 

The tax lower, introduced by Moe in October to go in impact in 2024, is an initiative to present reduction to the individuals of Saskatchewan from Trudeau’s hefty carbon tax for the following three years — after Trudeau himself provided reduction on house oil heating, affecting simply 3% of the inhabitants. 

Nearly all of Canadians who use oil to warmth their properties are in Atlantic Canada and Duncan identified they not solely saved their rebate — it doubled. 

“Not solely did that not have an effect on the rebates for individuals in Atlantic Canada, so there wasn’t a corresponding lower within the rebates for these people,” Duncan advised World Information Tuesday. “However on the similar time, the prime minister doubled the agricultural rebate element from 10% to twenty%.”

“So once more, that is one other concern that we’re on the lookout for equity,” he continued. “If Atlantic Canadians didn’t see a discount within the rebates after the federal authorities exempted them from the carbon tax, why would Saskatchewan individuals in Saskatchewan see a discount in our rebates?”

College of Regina assistant economics professor Brett Dolter disagrees. He thinks it’s probably Saskatchewanians will see a coinciding lower in rebates.

“I feel it’s been billed as a tax reduction, however I feel we even have to understand that it’s a rebate reduction as nicely, which suggests we’re not going to be getting as excessive of rebates,” Dolter mentioned, per World information. “The best way that the carbon worth has labored is that that is cash that’s been paid for costs on gasoline, diesel, pure fuel goes right into a fund and other people get the quarterly funds primarily based on their family dimension.”

Spokesperson for Finance Minister Chrystia Freeland, Katherine Cuplinskas, mentioned Saskatchewan households really get extra in rebates than they paid for the value on air pollution. 

“The value on air pollution places more cash again into the pockets of nearly all of Canadians. In 2023/24, a household of 4 in Saskatchewan is receiving $1,360 again by air pollution pricing rebates,” mentioned Cuplinskas. “And, beginning this spring, households residing in rural communities will see a 20% top-up.” 

“Air pollution pricing rebates, that are direct assist to households, are contingent on a province having the federal worth on air pollution — a framework which has been upheld by the Supreme Courtroom of Canada.”

In 2022, Ottawa obtained $172 million by carbon taxes in Saskatchewan. On the time, the tax was $50 per tonne. It’s at present $65, and by April 1 it should enhance to $80 per tonne.