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Briefing

Federal government pauses carbon tax on oil heating

Prime Minister Justin Trudeau put a three-year pause on carbon taxes for heating oils and doubled the rebate that rural households get back for paying carbon taxes to 20 per cent. (The Logic)

Briefing

Federal government pauses carbon tax on oil heating

By Jesse Snyder
Oct 27, 2023
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Prime Minister Justin Trudeau put a three-year pause on carbon taxes for heating oils and doubled the rebate that rural households get back for paying carbon taxes to 20 per cent. (The Logic)

Talking point: The policy is mostly directed at Atlantic provinces, where roughly 30 per cent of households still use oils to heat their homes. Atlantic premiers supported the move, saying it will help people manage inflation, while Conservative Leader Pierre Poilievre accused Trudeau of removing the tax in order to avoid political backlash. Alberta Premier Danielle Smith criticized the lopsided nature of the change, saying it favours households that use a particular type of home-heating system. The policy shift could undermine the Liberal’s carbon tax advocacy more generally, as their arguments have long rested on a claim that most households would not pay more under the tax.

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