Provincial Government disappointed with Federal Carbon Tax backstop

The provincial government is disappointed with a decision by the federal government to impose its federal carbon tax backstop on the province as of July 1, 2023.

The Provincial Government will now join six other provinces that have received the federal carbon tax backstop.

Premier Furey stated in a letter to the Federal Minister of Environment and Climate Change back in September that, "the current price signals being provided by the market are far stronger than the signals that removal of these exemptions would have provided under normal economic circumstances, and they are already generating the changes in perspective and behaviour that the Federal Government desires."

As a result, the provincial government will repeal its legislation and no longer collect carbon tax. Residents will now receive Climate Action Incentive Payments directly from the Federal Government as of July 2023.