Ottawa agrees with Saskatchewan on carbon tax

Photo: Michael Bell Archives The Canadian Press Earlier this year, Premier Scott Moe's (above) Saskatchewan Party government stopped paying the carbon tax on natural gas./Michael Bell

Jeremy Simes – The Canadian Press to Regina

Posted at 5:29 p.m. Updated at 5:35 p.m.

• Canada

The federal government says it reached an agreement with Saskatchewan where the province would not pay Ottawa any carbon pricing money, although the matter could still go to court.

National Revenue Minister Marie-Claude Bibeau announced that the agreement guarantees 50% of the unpaid amounts owed by Saskatchewan until the dispute is resolved .

She adds that the agreement complies with the law and standard usage.

“Our government remains committed to upholding this important law that propels us toward a more sustainable future and is committed to being fair to all Canadians by providing the full Canadian carbon rebate, where the safety net system federal law applies,” Bibeau said in a statement.

Saskatchewan Justice Minister Bronwyn Eyre said the province had proposed establish a letter of credit, a document that guarantees payment if conditions are met.

She said the dispute could, however, still be taken to the Canadian Court of Justice. 'tax.

200% Deposit Bonus up to €3,000 180% First Deposit Bonus up to $20,000

Earlier this month, Saskatchewan filed for an injunction in Vancouver Federal Court to stop the Canada Revenue Agency from collecting $28 million through a bank order, about half of the $56 million she says she owes the province.

A judge had granted a temporary stay to prevent the seizure of money until the court's arguments can be heard.

Mrs Eyre called this reprieve a victory.

“The bank account and the fund of the province's general revenues are safe and sound, and all funds remain there, thanks to the early intervention of the court,” she said in a statement. “We stopped them. »

Earlier this year, Premier Scott Moe's Saskatchewan Party government stopped paying the carbon tax on natural gas, after the premier Justin Trudeau exempted home heating oil users from this payment.

Mr. Trudeau's decision was widely seen as helping people in Atlantic Canada, where home heating oil is commonly used and polls suggest the federal Liberals need to boost their support.

< p>Saskatchewan claims it is unfair for its residents to pay while those in other provinces get a break. She also argues that it is unconstitutional for Ottawa to empty a provincial bank account.

Court documents filed by Ottawa indicate that Saskatchewan's position has no weight . These documents indicate that the carbon pricing law allows the revenue agency to collect 50% of what is owed, if that figure exceeds $1 million.

Ottawa also argues that allowing an injunction would harm the carbon pricing system and signal to other provinces that they can opt out.

Ms. Eyre warned that Saskatchewan will continue not to collect the tax from those who use natural gas to heat their homes.

“This exemption will remain in place until this government federal government, or the next one, do the right thing and remove the carbon tax for everyone and everything,” she announced.