Saskatchewan government to eliminate industrial carbon tax on April 1

Premier Scott Moe Halts Saskatchewan’s Industrial Carbon Tax

Premier Scott Moe of Saskatchewan has announced a pause on the province’s industrial carbon tax, specifically targeting the carbon tax rate under the Output-Based Performance Standards (OBPS) program, which applies to large industrial emitters. This decision will come into effect on April 1.

“We have always stood against this tax from day one,” stated Premier Scott Moe on Thursday. “We do not view it as an environmental tax, but rather as a hindrance to investment and a contributor to the inflationary costs that Canadians are facing.”

The province estimates that the pause will result in significant savings for families and businesses in Saskatchewan, amounting to hundreds of dollars annually.

Additionally, on March 14, Prime Minister Mark Carney announced that the consumer carbon tax will also be eliminated on April 1. With these policy changes, Saskatchewan is set to become the first province in Canada to completely eliminate any form of carbon tax.

However, the tax pause will pose challenges to the Saskatchewan government’s budget projections. The latest provincial budget projected a $12 million surplus, which included an estimated $431 million in revenue generated by the OBPS program.

When questioned at a news conference about the potential impact on the province’s budget, Premier Moe stated, “We will provide more details in the coming days.”

Opposition and Response

Opposition NDP leader Carla Beck expressed approval of the carbon tax removal but raised concerns about the budget implications. She emphasized the importance of ensuring that Saskatchewan remains competitive in the face of global economic uncertainties and tariffs.

Regarding the lack of consultations on the budget impact prior to the announcement, Premier Moe justified the decision by stating that his government is following the lead of federal leaders as they reassess their policies.