Provincial sales tax will not be applied to federal carbon tax

Cristina Cross
April 6, 2019

Pallister said he would withdraw his court challenge if either the joint Ontario-Saskatchewan court challenge succeeds or the Trudeau government is defeated in the next federal election.

The premier said that even though Ottawa admitted that Manitoba's Green Plan was the best in Canada they would not permit the province to have a flat tax and insisted that they would impose the higher federal rates.

The taxpayers' watchdog said he would appreciate an assurance the $25 flat tax won't replace the federal levy.

In a survey of business owners in Ontario, Saskatchewan, Manitoba and New Brunswick, the Canadian Federation of Independent Business found that 87 per cent opposed this federal carbon tax plan.

Premier Brian Pallister says his government will launch a legal challenge against the federal government over the imposition of its carbon tax, which started Monday.

The feds plan to raise that by $10 per tonne each year until 2022. In February, the Government of Saskatchewan presented its position to the court of appeal that the imposition of a carbon tax is unconstitutional, and is waiting for the court to rule.

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The Made In Ontario Environment Plan was introduced in the legislature last November, and is making its way through the legislative process now. The premier dropped that plan when the federal government said it was not good enough.

Saskatchewan and Ontario have already undertaken their own court challenges.

Liberal MP Terry Duguid, who represents Winnipeg South, said Pallister is taking the wrong approach.

It said the federal government generally has the right to impose a carbon tax, but could be rebuffed if a province developed its own plan that would be equally effective in reducing emissions.

Carbon pollution will initially cost C$20 ($14.97) per ton.

"We would not need to do that but, at the same time, I don't want to prejudice the legitimacy of our court case by getting into hypotheticals".

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