Northwest Territories ends consumer carbon tax, lowering prices

The Northwest Territories is eliminating its consumer carbon tax, following a federal decision to cancel the tax. This change will reduce prices for fuel at the pump and for propane heating. Starting July 1, residents will also stop receiving offset payments that were meant to help with living costs. The territory’s finance minister, Caroline Wawzonek, said the Northwest Territories has its own carbon tax law. This allows it to make adjustments separate from federal changes. The new rules will take effect on April 1, but the government is unable to formally repeal the carbon tax act since the legislature is not in session. Instead, they will set the tax value to zero, effectively ending it. Residents can expect to see gas prices drop by about 20 cents per litre. For example, if gas was $1.629 per litre, the price would go down to about $1.45 without the tax. However, propane heating will also be cheaper, dropping around $0.123 per litre. While this means consumers will save money, the elimination of the tax also means residents will not receive rebates they had previously gotten four times a year. For example, a family in Paulatuk previously received quarterly payments totaling $2,542. They will no longer receive these payments after April. The government had anticipated earning around $97.5 million from the carbon tax revenues, which were used for projects aimed at reducing emissions and supporting local communities. MLAs have criticized the tax for making life more expensive, especially for those in smaller communities. Yellowknife MLA Kieron Testart highlighted the need to drop the tax, saying that Northerners are tired of paying it. He introduced a bill to repeal the carbon tax, which is currently under review. The finance department stated that the Northwest Territories does not need to adopt federal rules, as its structure allows for prompt changes when federal policies change. However, large emitters, like mines, will continue to pay the tax and receive a rebate. Some experts argue that the carbon tax on heavy emitters is essential for achieving Canada’s climate goals. The federal Conservative leader, Pierre Poilievre, stated that he would remove the tax on heavy emitters if elected.