Province considering legal action against carbon-tax hike: Smith

Appearing before a House of Commons committee, Premier Danielle Smith defended her government's plan to hike the provincial fuel tax while also calling on Ottawa to pause the coming increase in the carbon tax, something she later said the province could challenge in court.

Smith appeared by video link Thursday and addressed the standing committee on government operations and estimates.

In her opening statement, she asked members to “heed the calls” to suspend the increase in the carbon tax, which is scheduled to increase to $80 per tonne from $65 per tonne on April 1, prompting a likely increase in fuel prices.

“The only thing the federal carbon tax is achieving is higher costs,” Smith said. “It begs the question, how far will the federal government go to make life even more difficult and expensive when so many Canadians are already struggling?”

Alberta Conservative MPs Jasraj Singh Hallan and Laila Goodridge — herself a former United Conservative Party MLA — lobbed softball questions to the premier about the carbon tax and Alberta's relationship with the federal government.

Things turned feistier when Ontario Liberal MP Irek Kusmierczyk asked Smith about her appearance on stage alongside federal Conservative Leader Pierre Poilievre at an “axe the tax” rally in Edmonton Wednesday night.

He asked if she was there also protesting the looming four-cent hike in the provincial gas tax that is also slated to kick in Monday and will increase the provincial tax to 13 cents per litre.

“The federal government charges 35 cents in gasoline taxes. We charge 13 cents,” she said, having earlier noted the province suspended the gas tax on New Year's Day 2023.

Alberta's fuel tax will remain at 13 cents per litre at least until June 30. The tax rate is adjusted quarterly based on a scale determined by the average price of a barrel of West Texas Intermediate ( WTI).

The price of WTI sat at US$83 as of midday Thursday, which if it holds as an average, would be above the $80 threshold to lower the tax again to nine cents per litre the next time it is adjusted.

Later in the hearing, Ontario Liberal MP Yasir Naqvi contrasted the province's fuel tax hike with the rebate received from the federal carbon tax.

“There will be no rebate for Alberta families for the increase they will be see on April 1,” he said.

“Albertans will get it removed completely if gas prices remain high,” Smith replied, adding, “I'd love to see the federal government do the same.”

On Wednesday, NDP Opposition Leader Rachel Notley called on Smith to halt the fuel tax hike, noting Alberta is the only province to see two gas tax increases.

“Instead of complaining and playing partisan politics about a tax for which people get a rebate, the premier should focus on the tax over which she has complete control, for which they do not get a rebate,” Notley said.

Smith also said during Thursday's hearing that the Alberta government is pursuing “about 14” different legal actions against the federal government.

The office for Justice Minister Mickey Amery provided a list of 12 legal actions the province is engaged in against Ottawa.

Those include active litigation involving plastics and the Impact Assessment Act as well as six judicial reviews regarding a federal firearms ban and also four other reviews regarding the Emergencies Act.

Amery later told reporters more legal actions could soon follow but declined to give details.

“That will become apparent to everyone in short order,” he said.

At an unrelated news conference later Thursday, Smith went on to say future litigation could also include a challenge to the carbon tax itself.

“We are seeking advice on whether we can also challenge the carbon tax now that it's, I think, violating the spirit of what was decided in the original Supreme Court action, which was to apply a tax equally across the country to all users in all provinces,” she said, referencing the October pause on the tax for home heating oil, a fuel used predominantly in Atlantic Canada.

Opposition justice critic Irfan Sabir said the UCP's legal challenges play better to its base supporters than in the courts, and characterized the lawsuits as a “distraction.”

“All of these lawsuits may help the premier's political base, but it's not helping us with the cost of living,” Sabir said.