The Saskatchewan government said the provincial sales tax (PST) won’t be charged on the federally imposed carbon tax when it comes to SaskPower and SaskEnergy utility bills.
The province said appropriate changes to the law have been made to ensure it doesn’t happen.
“Even as our government is fighting this harmful tax in court, the federal government is imposing their carbon tax on Saskatchewan families, communities, and businesses,” Saskatchewan Premier Scott Moe said.
“While the federal government is making you pay GST on top of this tax starting today, our government has ensured that you will not be paying PST on the federal carbon tax.”
The Saskatchewan government presented their case to the Court of Appeal in Regina in February, claiming the imposition of a carbon tax is unconstitutional.
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No decision has been made by the courts. The carbon tax took effect on April 1.
“This is another example of the federal government making it more difficult for Saskatchewan businesses to be competitive,” Saskatchewan Finance Minister Donna Harpauer said.
“Our government has been clear in its court challenge that we believe the imposition of the federal carbon tax is a violation of the Constitution and has no place in Saskatchewan.”
The province said it will keep fighting the tax in court and continue to act on their made-in-Saskatchewan Prairie Resilience climate change strategy, to address climate change.
More information on the Saskatchewan’s Prairie Resilience climate change strategy can be found here.