The state government is disappointed with the federal government’s decision to impose a federal carbon tax backstop on Newfoundland and Labrador as of July 1, 2023.
The state was seeking exemptions to account for those who heat with oil and those who harvest fish who use diesel on their ships to make a living.
The state said the federal government’s decision was made in response to the pressure residents are facing rising costs of living, or to help Newfoundland and Labrador cope with climate change and become leaders in the transition to cleaner energy. It does not reflect meaningful changes.
Newfoundland and Labrador’s carbon tax was imposed by the state government but did not include home heating fuel and many other uses. We no longer collect a carbon tax.
“The current price signals that the market is providing are far stronger than the signals that the removal of these exemptions would provide under normal economic conditions, and already signal the change in perspective and behavior desired by the federal government. I am producing.”
-Prime Minister Fury in response to Federal Minister for Environment and Climate Change on 2 September 2022
Oregan Defends Carbon Tax
Liberal MP Seamus Oregan has defended the federal government’s decision, noting that NL will be eligible for kickback checks. He imposes carbon tax backstops on three states, including Newfoundland and Labrador.
Oregan said residents are eligible for rebate payments through the Climate Action Incentives Fund because Ottawa controls taxes.
Beginning in July, residents of Newfoundland and Labrador will begin receiving payments similar to those of Ontario, Saskatchewan, Alberta and Manitoba. O’Regan says he has four payments a year. In the Netherlands, a family of four will receive $328 quarterly from her July.
He also pitched people switching from oil heat to heat pumps. He says the carbon tax won’t apply to home heating fuels until the winter heating season is over.
The state’s environment and climate change minister, Bernard Davis, said Oregan’s seeing it as a good news announcement shows the federal government isn’t listening.
Davis said he was not against the concept of a carbon tax, but against the current status quo. He said global markets are pushing prices up and pushing people towards green initiatives anyway, which is what carbon taxes are for.
PC leader David Brasil sees the state’s inability to pull off a successful anti-tax campaign as a “colossal failure.” The Brazilian government hoped that the touted partnership between his two levels of government would find a solution to address the state’s climate needs without further hardship for the people.
NDP leader Jim Dinh has said he supports a pollution tax, but inflation still exists without a carbon tax and wants the government to address some of the root causes.
Inflation is driven by huge corporate profits from oil companies and supermarket chains, Ding said. He says the government should tax the casual profits of large corporations.