Saskatchewan government to eliminate industrial carbon tax on April 1
Premier Scott Moe is pausing Saskatchewan's industrial carbon tax.
The decision targets the carbon tax rate under the Output-Based Performance Standards (OBPS) program, which taxes large industrial emitters. The pause will go into effect on April 1.
"We have always stood from day one against this tax," said Premier Scott Moe on Thursday. "We don't think it is in any way an environmental tax, but ultimately is preventing investment and enhancing the inflationary costs that we are experiencing as Canadians."
The province said the pause will save families and businesses in the province hundreds of dollars a year.
On March 14, Prime Minister Mark Carney announced the separate consumer carbon tax will also be eliminated on April 1. The two policy changes will make Saskatchewan the first province in Canada to fully remove any carbon tax, the province's statement said.
The tax pause will complicate the Saskatchewan government's budget projections. In its latest provincial budget, the government projected a $12-million surplus, but that included an estimated $431 million in revenue generated by the OBPS program.
"We're gonna have those details in the days ahead," Moe said Thursday when asked at a news conference whether the decision will put the province in a deficit.
WATCH | Sask. Premier Scott Moe to pause industrial carbon tax:
Sask. Premier Scott Moe to pause industrial carbon tax
22 minutes ago
Duration 3:10
On why consultations on the budget impact didn't happen before the announcement, Moe said his government is "taking our cue from the federal leaders as they start to back up on this policy."
In a statement, Saskatchewan Opposition NDP leader Carla Beck approved of the removal, but criticized the budget impacts.
"We need to make sure our province isn't left behind at a time when we're facing tariffs and chaos in the global economy," she said.
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