Premier Andrew Furey has written Prime Minister Justin Trudeau requesting a pause on an increase in the carbon tax due to take effect April 1st.
In his letter, Furey states “punishing inflation” is having a detrimental impact on all Newfoundlanders and Labradorians, particularly the most vulnerable.
He says the province is invested in environmental sustainability, but also committed to the social and economic well-being of its people.
Furey says the federal carbon tax is causing “understandable worry as people consider how they will manage the mounting fiscal strain.”
I continue to stand up for Newfoundlanders and Labradorians against the federal carbon tax.
I am now asking Ottawa to pause its planned increase to the carbon tax, set for April 1st, as the high cost of living is enough of a burden on families.
The full letter is here: pic.twitter.com/1yJaPGOsZH
— Premier of NL (@PremierofNL) March 12, 2024
He wants the federal government to pause the implementation of the nearly 25 per cent tax increase on April 1st “at least until inflation stabilizes” and interest rates drop.
Furey says while the province is grateful for federal rebates, he says they do not take into account the “induced and indirect costs of living on an island or living in rural and remote areas.”
He calls the increase to the carbon tax, combined with new clean fuel regulations, a “significant inflationary pressure point.”
Federal Minister Reacts
It didn’t take Ottawa long to nix the idea of pausing the pending increase in the carbon tax.
Federal Minister Francois Philippe Champagne told CTV News he has known Furey for a long time but Ottawa will not consider his request and the extra taxes on fuel come in April 1st as planned.
He says they are serious about fighting climate change and that the carbon tax will put money in the hands of residents through the rebate component.