The Saskatchewan government says it has filed an injunction in an attempt to stop the Canada Revenue Agency (CRA) from taking money from the government after the Sask. Party refused to collect the federal carbon price on natural gas.
Saskatchewan Premier Scott Moe made the announcement on Thursday with a video from Minister of Justice Bronwyn Eyre calling the federal government’s move “unfair and unconstitutional.”
Around November 2023, Moe announced that there would be no charge on electric heating after the feds created a temporary tax exemption to Atlantic Canada for home heating oil.
Moe called the federal tax exemption unfair and politically motivated and called for something similar in Saskatchewan for natural gas.
Despite the stop in Saskatchewan’s collection of the federal carbon price on natural gas, residents in the province have still been receiving carbon rebate cheques.
Eyre claimed the feds have been threatening the province by saying they’d remove rebates, add fines, or that Saskatchewan executives could face jail time.
In April it was announced that the Canada Revenue Agency would audit the province for not paying the carbon levies.
Prime Minister Justin Trudeau said the CRA is “very, very good” at getting money owed and wished Moe “good luck” in dealing with the agency.
Trudeau has defended his decision to exempt home-heating oil users, saying it’s more expensive than natural gas. He has ruled out offering exemptions to other users.
Eyre claims Canada’s constitution protects Saskatchewan from the feds taking money from its bank account.
“This is about fairness, and the fair application of the law,” Eyre said.
— with files from The Canadian Press