Trudeau says there will ‘absolutely not’ be further carbon tax exemptions

Prime Minister Justin Trudeau is standing firm that his government will not make any further exemptions to the carbon tax after announcing a three-year break on heating oil.

“There will absolutely not be any other carve-outs or suspensions of the price on pollution,” Trudeau told reporters on his way into Tuesday’s question period.

Last week, Trudeau announced that the government would exempt heating oil from the carbon tax for three years. He said the pause is meant to give Canadians who use oil to heat their homes more time to switch to other sources, such as electric heat pumps.

But the Liberals are facing increased political pressure from the Conservatives and some provincial premiers to exempt fuels like propane and natural gas from the tax.

Last week, Saskatchewan Premier Scott Moe and Alberta Premier Danielle Smith called on Ottawa to apply the same exemption to natural gas, used by a majority of residents in their provinces for heating.

On Monday, Moe upped the ante by declaring that SaskEnergy — the provincial Crown corporation responsible for natural gas distribution — wouldn’t collect the carbon tax starting in January if an exemption wasn’t extended to other heating fuels.

“I cannot accept the federal government giving an affordability break to people in one part of Canada, but not here,” Moe said in a video posted on X, formerly Twitter.

Trudeau defended the decision to only exempt heating oil on Tuesday, arguing that it is more expensive than gas and propane and is generally used by low-income Canadians.

In addition to the carbon tax exemption, Trudeau also announced Thursday that his government would be topping up a grant program aimed at helping Canadians switch to using heat pumps to heat their homes and away from using fossil fuels.

So far only the Atlantic provinces have signed up for the enhanced grant program. On Tuesday, Trudeau challenged Prairie premiers to join in on the program.

“Work with us to make sure that low-income families get heat pumps for free,” Trudeau said Tuesday. “It’s a program for right across the country.”