Ottawa-imposed carbon tax unconstitutional, Ontario argues

TORONTO — Ottawa’s attempt to impose a carbon tax on the provinces is unconstitutional because the federal government does not have jurisdiction to regulate greenhouse gas emissions, the Ontario government argues in court filings connected to its legal challenge of the Liberals’ emissions pricing law.

In documents filed Friday, the province’s Progressive Conservative government argues the federal Liberals are trying to impose a form of “unconstitutional disguised taxation.” Allowing Parliament to regulate all greenhouse gas emissions would “seriously disrupt” the balance of power set out in Canada’s constitution, the Tories say.

“The provinces are fully capable of regulating greenhouse gas emissions themselves,” the government’s factum says.

It also argues that the “charges” the federal law imposes are “neither valid regulatory charges nor valid taxation.”

Ontario launched its legal challenge of the federal government’s Greenhouse Gas Pollution Pricing Act this summer, after Premier Doug Ford promised to fight the imposition of a carbon tax in court.

The federal government has said it will “backstop” any province that does not have its own carbon price in place by 2019, and will return most of the proceeds to taxpayers in that province.

Ford scrapped Ontario’s capand-trade system after winning a majority government in the spring election, triggering the need for the federal backstop.

A spokesperson for federal Environment Minister Catherine McKenna said carbon pollution has no borders and climate change is an issue of national concern.