Sask gov’t funds garnished over carbon tax dispute, justice minister says

The Government of Saskatchewan’s fight over the carbon tax took another turn on Thursday, with the apparent filing of an injunction against the Canada Revenue Agency.

Last fall, the federal government announced an exemption to the carbon tax for home heating oil, which is mostly used in eastern Canada. In response, the provincial government announced it would do the same for any home heating in Saskatchewan, stopping charging and remitting the carbon tax on natural gas and electricity used for home heating.

There was some confusion about how that move might affect carbon tax rebates for residents, as well as questions raised about possible fines or charges from Ottawa. In April, Premier Scott Moe said the Canada Revenue Agency would be auditing the province over the government’s non-payment of the carbon tax.

On Thursday, Saskatchewan Justice Minister Bronwyn Eyre said the Canada Revenue Agency is trying to garnish the province’s accounts, and that the province has filed an injunction aiming to stop it.

The Trudeau-NDP government is sending the CRA after the province’s bank account, all because we are providing the same carbon tax relief on home heating in SK they provided Atlantic Canada.

It’s unfair and it’s unconstitutional. Here’s our response. pic.twitter.com/x1GtiNIJ9g

— Scott Moe (@PremierScottMoe) July 4, 2024

“The Province of Saskatchewan has filed an injunction to try to stop this unfair and unconstitutional cash grab by the Trudeau government,” Eyre said in a video posted to social media.

The minister said the situation is about fairness and the fair application of the law.

“Other parts of Canada get tax relief, but we get our bank account garnished,” Eyre said.

980 CJME has reached out to the provincial government for more information, as the announcement came in a social media video.

Meanwhile, the Government of Saskatchewan is planning to push back against other federal regulations.

The provincial government recently announced that it will not obey Ottawa’s coming Clean Electricity Regulations, which are expected to come into effect on January 1. According to a report from a provincial tribunal, complying with the environmental regulations would reduce Saskatchewan’s economic growth by $7.1 billion, cost the province at least 4,200 jobs, and reduce exports by $8.1 billion.