Sask. earmarks General Revenue Fund, Crown funds for poss. carbon tax remittance

The Government of Saskatchewan says that “to date, the federal government has not responded to our applications.”

Published Jan 04, 2024  •  2 minute read

Dustin Duncan, now the minister responsible for SaskEnergy, speaks at the Legislative Building in Regina in August. Photo by Michael Bell /The Canadian Press

The province has earmarked the General Reserve Fund and/or existing SaskEnergy funds if it opts to make carbon tax payments to Ottawa beyond January, but says it’s waiting for a cue from the feds before making a decision.

Minister Responsible for SaskEnergy Dustin Duncan first told CBC Morning Edition’s Stefani Langenegger on Thursday that the province hadn’t yet received a response from the federal government in regards to its request to become the registered distributor of natural gas in Saskatchewan in lieu of SaskEnergy.

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Duncan has said this is to ensure responsibility, and any repercussions should the province decide not to remit, is placed on the elected government.

In an emailed statement sent to the Leader-Post, the Government of Saskatchewan confirmed the crickets, saying that “to date, the federal government has not responded to our applications.

“We require this clarity before making any final decisions on carbon tax remittances.”

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Residents will not be charged a federal carbon tax for any natural gas and electric heat usage on or after Jan. 1. Charges will appear on utility bills for usage in December, which must be paid by the end of January in accordance with federal legislation. All told, the province says this move will save households an average of $21 each month in the winter.

Speaking with the Leader-Post in December, University of Calgary economics professor Trevor Tombe said the refusal to make carbon tax payments could result in cutbacks to the federal tax-free Climate Action Incentive.

“You pay less, in aggregate, on the carbon tax; you receive less overall on the rebate. The two are linked in that way,” he said at the time.

Thursday’s statement from the province reiterated the government’s message that this move is about providing fairness to Saskatchewan residents in the same way the federal exemption for those who use home heating oil, mostly folks in Atlantic Canada, does.

“Saskatchewan has been clear that we oppose the carbon tax on everything for everyone, and we continue to advocate for exactly that to the federal government,” the statement said.

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