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Prime Minister Justin Trudeau has once again defended the carbon tax, telling reporters this morning that "it’s basic math” that most Canadians benefit from the levy.
He also lashed out at his fellow Liberal Andrew Furey after the Newfoundland and Labrador premier joined six other provincial leaders in calling for Trudeau to pause the April 1 hike to the tax.
The federal carbon price will be hiked to 17.6 cents per litre of gas and 15.25 cents per cubic metre of natural gas on April Fools' Day – but Trudeau emphasized that rebates will also be increased.
“The Canada Carbon Rebate helps out 80 per cent of Canadians with more money than they pay in terms of a price on pollution,” he told reporters in Montreal today.
“It’s basic math. And we’re going to continue to be there to support Canadians with the Canada Carbon Rebate.”
The federal government has said a family of four should expect to receive a rebate of about $1,800 if they live in Alberta, $1,504 in Saskatchewan and $1,192 in Newfoundland and Labrador.
But the premiers of those provinces have not so far been mollified by talk of rebates, with some critics arguing that it would be better to simply abolish the tax and make the need for a rebate redundant.
On Tuesday, Furey told Trudeau that Canadians are facing “the most significant cost of living crisis in a generation.”
In a letter addressed to the prime minister and posted on X, Furey said the coming tax hike is making people “consider how they will manage the mounting financial strain.”
He “respectfully” asked Trudeau to pause the increase.
But the Liberal leader remains strongly committed to the tax, despite what he said was “public pressure of folks who are worried about the cost of living.”
“Canadians are squeezed on groceries, they’re squeezed on rent, they’re squeezed on cost of living,” he said. “We are putting more money in their pockets four times a year with the Canada Carbon Rebate and we’re going to continue to do that.”
I continue to stand up for Newfoundlanders and Labradorians against the federal carbon tax.
— Andrew Furey (@FureyAndrew) March 12, 2024
I am now asking Ottawa to pause its planned increase to the carbon tax, set for April 1st, as the high cost of living is enough of a burden on families.
The full letter is here: pic.twitter.com/fMW9coybTE
He added: “I think Mr. Furey is continuing to bow to political pressure. I think Canadians in Newfoundland and Labrador and right across the country expect their governments to do the right thing. And the right thing right now is not just fighting climate change and spurring innovation for the future. It’s about being there to support Canadians during this affordability crisis.”
The carbon tax policy has proved unpopular in recent months, with a poll in November last year finding that most Canadians want it to be abolished or reduced.
Conservative Party Leader Pierre Poilievre has put his “axe the tax” catchphrase at the centre of his bid to become Canada’s next prime minister.
The policy came under particular scrutiny late last year when Trudeau announced a carbon tax carve-out for home heating oil.
British Columbia, like Quebec and the Northwest Territories, has its own carbon tax system.
As with the federal tax, however, BC’s rate will be increasing from $65 per tonne to $80 on April 1.
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