Trudeau: No More Carbon Tax Exemptions

Prime Minister Justin Trudeau is determined in his decision not to grant additional exemptions to the carbon tax, maintaining this stance after declaring a three-year suspension on heating oil.

“There will absolutely not be any other carve-outs or suspensions of the price on pollution,” said Trudeau on Tuesday.

Recently, Trudeau revealed that heating oil will be free from the carbon price for three years. He clarified that the purpose of the temporary pause is to give Canadians who use oil for home heating a longer time to switch to more sustainable sources, such as electric heat pumps.

However, the Liberals are under political pressure from the Conservatives and provincial leaders to exclude fuels like propane and natural gas from the tax.

On Tuesday, Trudeau justified his decision to only exempt heating oil, stating that it is pricier than gas and propane and is predominantly utilized by low-income Canadians.

Trudeau also revealed that his government would enhance a grant program designed to assist Canadians in transitioning from fossil fuels to heat pumps for home heating.

“Work with us to make sure that low-income families get heat pumps for free,” he added. “It’s a program for right across the country.”

On Sunday, Conservative Leader Pierre Poilievre sent a letter to Trudeau urging the government to eliminate the tax on all heating fuels.

“You must be consistent and keep the heat on and take the tax off now for all Canadians,” wrote Poilievre.

According to Statistics Canada’s 2021 data, just three percent of households in the country depended on home heating oil. Although the oil exemption is nationwide, the majority of homes relying on heating oil are located in the Atlantic provinces.

Nearly one out of every five homes in Newfoundland and Labrador uses home heating oil. Furnace oil is used to heat one in three homes in Nova Scotia and two out of five homes in Prince Edward Island. In New Brunswick, home heating oil is used by roughly one in every fourteen houses.

Leader of the NDP Jagmeet Singh highlighted Poileivre’s remarks, claiming that the government has lost credibility on climate change and accused the Liberals of separating Canadians.

“Let’s approach [climate change] by bringing people together, not dividing people like Justin Trudeau is doing,” said Singh.