Premier Danielle Smith is asking the federal government for a break on the carbon tax. (Photo: Government of Alberta)

By David Opinko

Smith calls for carbon tax to be scrapped, or at least give exemptions

Mar 15, 2024 | 10:10 AM

Alberta’s premier is once again asking the federal government for a break on the carbon tax.

Danielle Smith penned a letter to Prime Minister Justin Trudeau on Thursday, March 14, 2024, just one day after the two met in Calgary.

She joined several of her provincial counterparts in stating that people have faced pressures due to the rising cost of living and high interest rates and that more needs to be done about it.

“That’s why, on behalf of Albertans, I urge you to scrap the punitive carbon tax. If your government is unwilling to listen to the millions of Canadians calling for this, we’re insisting you provide a uniform exemption on all forms of home heating including natural gas for all provinces,” said Smith.

Last November, the federal government allowed an exemption for home heating oil, meaning the costs of that fuel source would not be subject to the carbon tax. However, the majority of people who use home heating oil live in Atlantic Canada.

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READ MORE: The carbon price is now off home heating oil — but the cost of oil is still high

Smith continued in her letter, “At the very least we’re asking you to suspend the federal carbon tax increase on April 1, 2024.”

The price of carbon is set to rise by $15 per tonne to $85 per tonne next month. When Smith pressed Trudeau about the increase during their meeting, he merely replied that the rebates Canadians receive from the tax are going up as well.

According to Smith, her government has acted “swiftly and decisively” to offer relief to Albertans when it comes to affordability.

Some examples she provided of this include re-indexing payments for seniors and people with disabilities, providing support to food banks, and funding for low-income transit program.

She also touted the province’s efforts to reduce carbon emissions and achieve a net-zero electricity grid by 2050. Trudeau, on the other hand, wants all provinces to reach this target by 2035.

READ MORE: Premier Smith says Alberta working with feds where it can, despite differences