The GNWTSA国际影视传媒檚 announcement of a pause in carbon taxes on home heating oil was one that came as no surprise to the MP for the NWT, but he points out that the territorial government stands to lose a source of revenue.
Finance Minister Caroline Wawzonek stated on Tuesday evening that the tax will be suspended as of April 1 for those who use home heating oil and it will be in effect until March 31, 2027. Those who use propane and natural gas for heating will still have to pay the carbon tax.
SA国际影视传媒�(The suspension) was an option that was available to the NWT since the prime minister announced the pause back in October,SA国际影视传媒� Michael McLeod told SA国际影视传媒 on Thursday afternoon. SA国际影视传媒淚SA国际影视传媒檓 not surprised by it based on the comments made by the minister and the premier. The option was there to do it.SA国际影视传媒�
But McLeod thinks there was some confusion around the way the price was rolled out in terms of what appeared on customersSA国际影视传媒� bills as well as rebates.
SA国际影视传媒淭he pricing on heating fuel wasnSA国际影视传媒檛 handled very well,SA国际影视传媒� he said. SA国际影视传媒淭here was confusion because I think not a lot of people knew what it was for and people were maybe expecting cheques from Revenue Canada stamped SA国际影视传媒榬ebateSA国际影视传媒� on it. It ended up that people were upset because they maybe didnSA国际影视传媒檛 get a rebate, or less of a rebate, and blamed the pricing for the increase in their bills.SA国际影视传媒�
Under federal legislation, residents of some provinces and territories are exempt from paying carbon tax on home heating oil. However, not all provinces and territories follow the federal system for carbon taxes. Some, like the NWT, choose to use an independent system. That means that the federal exemption didnSA国际影视传媒檛 automatically apply in the territory, and residents would continue to pay the tax until the territorial government changed its rules.
In a previous interview with SA国际影视传媒, Premier R.J. Simpson said the carbon tax was SA国际影视传媒渏ust not fair for the NorthSA国际影视传媒� and felt the NWT should be totally exempt from paying it at all.
The previous legislative assembly passed a bill to take over collecting the carbon tax and distributing it under its own means. If it didnSA国际影视传媒檛 do that by April 1, 2023, the federal backstop would have come into effect, meaning Ottawa would have handled all rebates and tax administration.
The pause in collecting the tax means the GNWT will be starving itself of money, McLeod added.
SA国际影视传媒淚f you cancel the tax, you cancel the revenue,SA国际影视传媒� he said. SA国际影视传媒淭heySA国际影视传媒檙e in a cash crunch right now and now that theySA国际影视传媒檝e stopped it, theySA国际影视传媒檙e going to lose about $16 million this year and about $18 million next year, if I remember correctly. Given the reality of their situation, ISA国际影视传媒檓 not sure how theySA国际影视传媒檒l replace that lost revenue.SA国际影视传媒�
McLeod said there is a need to explore other energy options and the opportunity is there for the NWT to be at the forefront of trying new ideas.
SA国际影视传媒淭he challenge of warming temperatures is already here and itSA国际影视传媒檚 a problem for all of us,SA国际影视传媒� he said. SA国际影视传媒淭he next election may be about carbon, but those of us who are 60 and over will see floods and worse air quality. My fear is for the kids who are coming after us because theySA国际影视传媒檒l feel the full effect if we donSA国际影视传媒檛 do something now. Scientists have been waving the red flag in our faces.SA国际影视传媒�
