Carbon tax upheld by Supreme Court of Canada

by | Apr 2, 2021 | 5 Ag Stories, News

The Supreme Court of Canada has upheld the constitutionality of a carbon tax.

In a recent 6-3 decision, Canada?s highest court ruled in favor of the federal government?s implementation of the 2018 Greenhouse Gas Pollution Pricing Act. Ontario, Alberta and Saskatchewan have been legally challenging the Act since its inception. The court ruled that reduced greenhouse gas emission is a matter of national concern, and that the law is focused on that purpose.

Saskatchewan Premier Scott Moe says any legal avenues against the carbon tax have now been exhausted.

?While today?s decision does effectively end our legal avenues as a province, it does not end our opposition to this costly and ineffective tax,? said Moe. ?It does nothing to end the growing uncertainty for businesses that bear the brunt of this tax. In agriculture, in energy, in mining, in forestry, in manufacturing. And just because Prime Minister Justin Trudeau has the legal right to impose a carbon tax doesn?t mean that he should.?

Reports say the Canadian government plans to increase the current carbon tax levy by $15 per carbon-ton per year, until it hits $170 per ton, when levy fees will be reviewed. Canadian farmers are concerned about natural gas, propane and fertilizers being subject to the carbon tax. Ryan Bender is a cash crop farmer in Alberta.

?It hasn?t been too popular in the farming community,? Bender said. ?I?ve yet to meet a farmer that likes the carbon tax. It places us at an economic disadvantage over any jurisdiction that doesn?t have it. We are at a disadvantage to them because it increases our costs without compensation for it.?

The carbon tax does not apply to diesel fuel used for on-farm equipment. NAFB reports that there are carbon tax rebates available for farm equipment purchases that can improve energy efficiency.