Premier Danielle Smith's United Conservative government is taking the federal government to court over what they see as an unfair carbon tax exemption. Chris Schwarz/Government of Alberta

By Eli J. Ridder

PROVINCIAL POLITICS

Alberta files legal action against federal government over eastern Canada carbon tax exemption

Oct 29, 2024 | 12:34 PM

Premier Danielle Smith revealed Tuesday that Alberta is taking the federal government to court over what her administration sees as an unfair carbon tax exemption for heating oil in eastern Canada.

Her government called the exemption a double standard because Albertans continue to pay carbon taxes to stay warm in the winter.

The United Conservatives filed an application seeking judicial review of the exemption, asking the Federal Court to declare it unlawful and unconstitutional, hoping the levy is axed altogether.

“Last year, Ottawa decided Canadians in the east deserved a three-year break from paying the carbon tax on their home heating costs,” Smith said.

“While we’re happy for these Canadians, Alberta, Saskatchewan and other provinces who heat their homes with natural gas have been deliberately excluded from these savings,” she added.

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“Albertans simply cannot stand by for another winter while the federal government picks and chooses who their carbon tax applies to. Since they won’t play fair, we’re going to take the federal government back to court.”

Smith and other conservative premiers say the carbon tax is increasingly contributing to financial pain, but Prime Minister Justin Trudeau’s Liberals maintain it puts money back into the pockets of Canadians in the form of rebates.

Smith’s announcement of the legal challenge comes ahead of an annual leadership review taking place this weekend in Red Deer.

Alberta’s justice minister, Mickey Amery, said it took about a year for the province to assemble its legal argument. He expects it to take another year to work its way through court.

Heating oil is burn to keep homes warm and is used widely in Canada’s Atlantic provinces and Quebec.

Forty per cent of households in Price Edward Island use the oil as well as 32 per cent in Nova Scotia, 18 per cent in Newfoundland and Labrador, seven per cent in New Brunswick and four per cent in Quebec.

Less than one per cent of households use heating oil in Alberta, Saskatchewan and Manitoba, according to background provided in a news release.

— with files from Canadian Press