(Government of Alberta)

By David Opinko

Kenney urges Ottawa to cancel planned federal carbon tax increase in April

Mar 28, 2022 | 1:50 PM

LETHBRIDGE, AB – Premier Jason Kenney calls it an “April Fool’s Day prank” that is not funny.

The federal government is set to increase the carbon tax to $50 per tonne on Friday, April 1.

Kenney announced the following motion that will be introduced into the Alberta legislature on Monday, which pleads Ottawa to cancel the planned increase:

“Be it resolved that the Legislative Assembly call on the Government of Canada to stop its planned April 1, 2022 increase of the carbon tax to $50 per tonne, and further plan to quadruple the carbon tax to $170 a tonne, given that Canadian families are struggling with the highest inflation in 30 years.”

The premier states that the carbon tax hike could not have come at a worse time.

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Canadians are already dealing with high inflation rates, supply chain issues, and the economic impacts of Russia’s invasion of Ukraine.

READ MORE: Grocery and gas prices up significantly in 2021 as inflation outpaced wages

Kenney cited data from the Bank of Canada, which estimates that the rise in the federal carbon tax will add another 0.5% to inflation.

Albertans can still expect some relief at the pumps, however. The government will cease the collection of the provincial gas tax on April 1, which is expected to lower gas prices by 13 cents per litre.

With the carbon tax adding three cents per litre for drivers, fuel will still be 10 cents per litre cheaper.

READ MORE: Alberta to provide relief from high fuel and utility prices

Assuming that the April 1, 2022 carbon tax hike to $50 per tonne goes ahead, carbon taxes would account for 11 cents per litre at the pump. When it reaches $170 per tonne in 2030, Kenney says the carbon tax will add 39 cents per litre.

“These are staggering numbers that many families just can’t afford.”

In 2016, the former Alberta NDP government introduced a provincial carbon tax. Kenney and the UCP won the 2019 provincial election with one of their key commitments being to cancel the provincial carbon tax.

It was known at the time that the federal government had directed all provinces and territories to have a carbon tax, and that if jurisdictions did not have one of their own, Ottawa would impose a federal carbon tax on them.

Kenney tried to fight the federal carbon tax in the Supreme Court of Canada, but was unsuccessful in blocking its implementation.

READ MORE: Kenney “obviously disappointed” in Supreme Court’s carbon tax decision