Saskatchewan Seeks Injunction Against Canada Revenue Agency’s Collection of Carbon Funds
The Saskatchewan government has filed for an injunction to halt the Canada Revenue Agency from collecting carbon levy funds owed by the province.
Justice Minister Bronwyn Eyre did not provide immediate details on Thursday, but stated that Ottawa is targeting Saskatchewan’s finances.
“It’s unjust and unconstitutional,” Ms. Eyre said in a video message shared on social media.
“According to Section 126 of Canada’s constitution, the federal government does not have the authority to seize funds from a province’s bank account.”
Earlier this year, Premier Scott Moe’s administration ceased payment of the carbon levy on natural gas to Ottawa after Prime Minister Justin Trudeau exempted users of home-heating oil from paying.
This move was seen as benefiting those in Atlantic Canada, where home-heating oil is widely used, and polls indicate declining support for the federal Liberals.
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Mr. Trudeau expressed confidence that the revenue agency will recover the outstanding funds from Saskatchewan.
He also assured that Ottawa will continue issuing carbon rebates to Saskatchewan residents, stating that most Canadians receive more in rebates than they pay in levies.
Some provincial leaders and federal Conservative Opponent Leader Pierre Poilievre argue that the levy increases the cost of living.
Saskatchewan’s decision not to pay the levy violates federal emissions legislation. The province may face penalties, or the minister in charge of natural gas distribution could face imprisonment for non-compliance with the regulation.
