Court to hear Saskatchewan's case to stop collection of carbon levy money

Federal Court in Vancouver is to hear a case today from the Saskatchewan government asking for an injunction to stop the Canada Revenue Agency from collecting millions in carbon levy money.

Premier Scott Moe's government argues it's unconstitutional for Ottawa to take from its bank account, and that it's unfair for Saskatchewan to pay.

Earlier this year, Saskatchewan had stopped remitting the carbon levy on natural gas to Ottawa, after Prime Minister Justin Trudeau exempted home-heating oil users from paying.

Trudeau's move was largely seen as helping those in Atlantic Canada, where home-heating oil is commonly used and where polls suggest the federal Liberals need to bolster support.

Court documents say Saskatchewan's unpaid bill has grown to $56 million between January and April -- and the Canada Revenue Agency had attempted to take $28 million through a bank order.

Ottawa has said it's standing firm on getting the money back, noting Saskatchewan is breaking federal emissions law by not paying.

This report by The Canadian Press was first published July 12, 2024.