Prime Minister Justin Trudeau says Saskatchewan residents will continue to get carbon rebates even though the province has stopped remitting levies from natural gas to Ottawa.
Trudeau says the Canada Revenue Agency has mechanisms to collect money the province owes.
The Saskatchewan government decided earlier this year to not remit the federal carbon price on natural gas to Ottawa, a move that breaks federal law.
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Saskatchewan Premier Scott Moe invoked the measure after Trudeau exempted home-heating oil users from having to pay the levy in a move largely seen as politically motivated to boost Liberal support in Atlantic Canada.
Ottawa had initially suggested rebates to Saskatchewan could be at risk, but that is no longer the case.
Trudeau says most Canadians receive more money back in rebates than they pay in carbon levies.
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