“While the federal government is making you pay GST on top of this tax starting today, our government has ensured that you will not be paying PST on the federal carbon tax.” Saskatchewan Priemier Scott Moe
The Government of Saskatchewan is ensuring Provincial Sales Tax (PST) is not charged on top of the federal government’s carbon tax on SaskPower and SaskEnergy utility bills. The federal government intends to charge the Goods and Services Tax (GST) on top of the carbon tax, in effect a tax on a tax.
“Even as our government is fighting this harmful tax in court, the federal government is imposing their carbon tax on Saskatchewan families, communities, and businesses,” Premier Scott Moe said. “While the federal government is making you pay GST on top of this tax starting today, our government has ensured that you will not be paying PST on the federal carbon tax.”
“This is another example of the federal government making it more difficult for Saskatchewan businesses to be competitive,” Finance Minister Donna Harpauer said. “Our government has been clear in its court challenge that we believe the imposition of the federal carbon tax is a violation of the Constitution and has no place in Saskatchewan.”
Saskatchewan has amended regulations to ensure PST will not be applied to the carbon tax on SaskPower utility bills. PST is not applied to natural gas, and SaskEnergy customers will not pay PST on top of the federal carbon tax. However, federal GST will be applied on the federal carbon tax on home owners’ utility bills.
In February, the Government of Saskatchewan presented its position to the court of appeal that the imposition of a carbon tax is unconstitutional, and is waiting for the court to rule. In the meantime, the federal carbon tax will be imposed April 1, 2019, as part of the federal government’s backstop provisions.
The Government of Saskatchewan will continue to fight the federal carbon tax in court, while continuing to act on our made-in Saskatchewan Prairie Resilience climate change strategy, an effective plan to help our province address climate change.
More information on Saskatchewan’s Prairie Resilience climate change strategy is available at https://www.saskatchewan.ca/business/environmental-protection-and-sustainability/a-made-in-saskatchewan-climate-change-strategy/prairie-resilience.
Federal Carbon Tax to Appear on Upcoming SaskPower and SaskEnergy Bills
Starting April 1, the Federal Carbon Tax will be applied to all bills received by SaskPower and SaskEnergy customers. This will result in a monthly increase for the average residential customer of about $2 for power and $9 for natural gas for the rest of 2019.
“In Prairie Resilience, our government has a Saskatchewan-based solution to lower greenhouse gas emissions without a tax,” Minister Responsible for SaskPower Dustin Duncan said. “SaskPower worked hard to ensure there would be no rate increase this year. The federal government is imposing a carbon tax that will take more than $52 million this year and $546 million through 2022 from SaskPower customers.”
“Our government is currently reviewing a request by SaskEnergy to reduce natural gas commodity rates to their lowest level in 20 years, effective April 1,” Minister Responsible for SaskEnergy Bronwyn Eyre said. “These savings would be wiped out by the Federal Liberals’ carbon tax, resulting in higher natural gas bills for homes and businesses. SaskEnergy serves 114,000 more homes and businesses, compared to three decades ago, and yet this larger customer base uses the same amount of natural gas as the smaller customer base did in 1988. This change happened through information, dedication and education—not unnecessary legislation.”
Customers will see the tax identified on their bills as a Federal Carbon Tax. The amount is expected to increase annually to coincide with the multi-year increases established in the federal plan. While the Government of Saskatchewan is challenging the carbon tax in court, it still applies during the legal process.
The charge will be applied to SaskPower bills related to electricity produced by power-generating sources like coal and natural gas. This charge will equal an average 2.7 per cent rate increase for 2019, which reflects the estimated additional cost to generate power from these sources. For the average residential customer, it means an increase of $18 over the course of the year, rising to $63 in 2022. On average, individual industrial customers will be paying an additional $164,600 this year, rising to $617,500 in 2022.
SaskEnergy customers will be paying about $70 million more the first year because of the Federal Carbon Tax. Customers can expect an additional charge of $1/Gigajoule or about $109 more this year for the average residential customer. There will be additional increases of about $54 per year through 2022.
You can find more information at www.saskpower.com/federalcarbontax and www.saskenergy.com/federalcarbontax.
Files from: Jim Billington, Director of Communications and Press Secretary to the Premier