Saskatchewan’s Court of Appeal decision that the federal carbon tax was in fact constitutional means Saskatchewans will pay Canada’s backstop carbon price, and residents will be eligible to receive the Climate Action Incentive rebate. Now that the province is legally obligated to implement Ottawa’s carbon tax and rebate program, the average Saskatchewan family (2.6 people) will receive a total of $4,061 in rebates by 2022, which leaves them $1,365 better off after factoring in the direct and indirect costs they will face from the tax.
Saskatchewan has questioned the constitutionality of the tax, which came into effect April 1. The province’s case was heard by Saskatchewan’s top court in February.
Clean Prosperity applauds the court’s decision, which implements a fair, effective and affordable policy that not only helps to fight climate change, but eases the cost burden of doing so with a rebate for families. According to the PBO’s report released in April, 8 out of 10 Saskatchewan households will get back more in carbon rebates than they pay in costs associated with the tax. A typical household in Saskatchewan is entitled to a carbon rebate of $403 dollars on their 2018 taxes, a figure which grows to $946 in 2022.
The federal government gave Saskatchewan and all other provinces the opportunity to set their own carbon pricing program, so long as it met federal standards, but introduced the backstop carbon price in the four provinces that did not develop compliant policies (Saskatchewan, Ontario, Manitoba and New Brunswick).
“Saskatchewan’s top court made a decision today that benefits both the planet and residents of the province.” Said Michael Bernstein, Executive Director of Clean Prosperity, “we hope to see the top courts in Ontario and Manitoba follow suit, and implement the lowest cost, most effective method of reducing Canada’s emissions and meeting our Paris targets.”