From the Canadian Taxpayers Federation

Author: Gage Haubrich

Ottawa unveiled an unorthodox carbon tax communications strategy in Saskatchewan: threats.

Saskatchewan minister responsible for SaskEnergy, Dustin Duncan, recently announced that the Saskatchewan government will not be sending the federal government money to cover its refusal to charge Saskatchewanians the carbon tax on home heating.

In October, Saskatchewan announced that it would stop collecting the federal carbon tax on home heating in the province. The provincial government estimates this will save the average family who uses natural gas to heat their home $400 this year. That’s enough to pay for a couple trips to the grocery store, and with the current prices at the store, families need all the relief they can get.

In response, federal Minister of Energy and Natural Resources Jonathan Wilkinson shot back  at Saskatchewan, announcing that because of this decision, Saskatchewanians will no longer be receiving the federal government’s carbon tax rebate.

Premier Scott Moe then pointed out the absurdity of the feds by highlighting that Saskatchewanians are still paying the carbon tax on gas, diesel and propane.

This whole mess started because Prime Minister Justin Trudeau backpedalled on his carbon tax and decided take it off heating oil. It’s a fuel primarily used in Atlantic Canada and used by almost zero Saskatchewanians.

Despite the exemption in Atlantic Canada being very similar to Premier Scott Moe’s plan in Saskatchewan, Atlantic Canadians are still on track to receive carbon tax rebates. And Quebec, which pays a lower carbon tax than the rest of the country, hasn’t faced the wrath of the federal government either.

Ottawa instead decided to pick a fight with Saskatchewan. It’s fight that won’t win them any favours in the province. At this point, it’s a good bet the Winnipeg Blue Bombers are more popular in Saskatchewan than the Liberals.

But not do outdo even himself, Wilkinson also added, “The rebate actually provides more money for most families in Saskatchewan.”

If only that were true.

Currently, the carbon tax costs 14 cents per litre of gasoline and will cost the average Saskatchewan family $410 this year, according to the Parliamentary Budget Officer.

Oh, and that’s including the rebates that Wilkinson is currently threatening to withhold.

Along with the carbon tax, Ottawa also charges a 10 cents per litre federal tax gas tax and then GST on top of the whole price of the gas, including the carbon tax. That means you are paying about two cents per litre in tax-on-tax in GST every time you fill up your vehicle.

And it’s going to get worse because the federal government plans to keep hiking up the carbon tax.

Come April 1, the carbon tax cost jumps to 17 cents per litre. By 2030, it will be 37 cents per litre and cost the average Saskatchewan household $1,723 per year.

And since almost everything we buy is delivered by a truck and then stored inside a store, the costs to transport and sell those items also goes up with the carbon tax.

After the announcement of the carbon tax heating oil exemption, five premiers, including Moe, wrote to Trudeau demanding that he take the carbon tax off all forms of home heating. It’s good to see premiers across the country take a stand, but Moe is the only one taking real action.

Instead of resorting to threats, maybe Ottawa should take the hint and scrap the carbon tax.