Saskatchewan won't remit carbon tax, minister says
Duncan says withholding levy on natural gas a matter of `fairness'
The Government of Saskatchewan will not be remitting the carbon tax on natural gas, Dustin Duncan announced in a video posted to social media Thursday morning.
“We recognize that this may come with consequences,” said Duncan, minister responsible for all major Crown corporations including Saskenergy, in the video shared by Premier Scott Moe.
“The Government of Saskatchewan will not be remitting the federal carbon tax on natural gas that Saskatchewan families use to heat their homes.”
Duncan said the decision was, in part, a matter of the carbon tax being applied evenly across Canada.
“In addition to affordability, this is also about fairness and our government refusing to allow Trudeau to treat Saskatchewan people like second-class citizens,” he said.
Speaking in front of Centre Block and the Peace Tower in Ottawa, Duncan addressed the camera in the wind and rain. He said he took a walk in the elements — alluding to 40 years prior when then Prime Minister Pierre Trudeau took a walk in the snow after which he decided to resign — before making his decision on remittance.
The video was the only communication on the decision by the Government of Saskatchewan on Thursday. A government spokesperson said the minister would be at the Canadian Nuclear Association conference in Ottawa, where there would be media availability.
NDP Leader Carla Beck agreed there is a question about fairness at play, with respect to who pays the carbon tax and who does not.
“We do not support the carbon tax and believe that Scott Moe could have got an Atlantic Canada-style carve out for Saskatchewan families if he actually did the work to fight for Saskatchewan, instead of jetting off on million-dollar trips to Dubai and India,” she said in an emailed statement.
This fight started in October 2023 when Prime Minister Justin Trudeau announced a three-year exemption from carbon pricing on home heating oil, which is primarily used in Atlantic Canada.
At the time, Moe said if a deal between Saskatchewan and Ottawa could not be reached “Saskenergy will stop collecting and submitting the carbon tax on natural gas,” for home heating.
This was “effectively providing Saskatchewan residents with the very same expectation that the federal government is giving heating oil in Atlantic Canada,” he said.
Ottawa has said in the past it expects all provinces to follow the law as it relates to remittance on carbon pricing but has not specially stated what repercussions Duncan may face. That's due to the passing of Bill 151, which amends the Saskenergy Act, making “the Crown and its ministers assume all responsibility associated with collecting and remitting or withholding the federal carbon tax.”
As of last week, the provincial government is officially registered as the distributor of natural gas in Saskatchewan.
Approximately 30,000 customers in Saskatchewan use electric heat, and the decision to stop collecting is anticipated to save natural gas users an average of $400, and electric users about $84 per household each year, according to Saskpower.
Duncan announced in early February that he would not seek reelection.
Asked at the time if the “threat of carbon jail” factored into his decision, Duncan said he would remain in his role as minister until the end of the spring sitting.
“If it's a decision that puts anybody in jeopardy, it's still gonna be me,” he said at the time.
Duncan and Moe have both said an exemption of carbon pricing in one part of Canada but not another is unfair.
“The price on pollution framework has been upheld by the Supreme Court of Canada,” said spokesperson Katherine Cuplinskas from Minister of Finance Chrystia Freeland's office in December 2023.
The federal government did not respond to requests for comment before print deadline.