Danielle Smith urges Trudeau to abandon carbon tax hike as 7 premiers now opposed

Alberta Premier Danielle Smith has urged Prime Minister Justin Trudeau to abandon the planned April 1 carbon tax hike.

As the duo made brief remarks prior to their first face-to-face meeting since last summer, Smith said she’s “very hopeful” that “some solution” could be agreed on the tax.

It comes as the total number of premiers objecting to the tax increase has grown to seven.

The federal carbon price will be hiked to 17.6 cents per litre of gas and 15.25 cents per cubic metre of natural gas on April Fools' Day – but rebates will also be increased.

On Tuesday, the Liberal premier of Newfoundland and Labrador, Andrew Furey, added his name to the list of unhappy provincial leaders.

In a letter addressed to Trudeau and posted on X, Furey said people in Canada are facing “the most significant cost of living crisis in a generation.”

The coming tax hike is making people “consider how they will manage the mounting financial strain,” Furey said, before “respectfully” asking Trudeau to pause the increase.

But Trudeau, speaking before his meeting with Smith in Calgary today, said that carbon rebates will also increase alongside the levy.

“As of the beginning of April, the average family of four in Alberta will get $1,800 a year with the Canada Carbon Rebate,” he said.

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/fMW9coybTE

— Andrew Furey (@FureyAndrew) March 12, 2024

“That's money in people's pockets even as we fight climate change."

Other premiers who have raised the alarm about the tax increase include Ontario’s Rob Ford, Saskatchewan’s Scott Moe and Nova Scotia’s Tim Houston.

British Columbia, like Quebec and the Northwest Territories, has its own carbon tax system.

As with the federal tax, however, BC’s rate will be increasing from $65 per tonne to $80 on April 1.

Last month, the Liberal government announced a change in the name of the carbon tax rebate scheme.

It was rechristened the “Canada Carbon Rebate,” having previously been referred to as the “Climate Action Incentive Payment.”

The carbon tax policy has proved unpopular in recent months, with a poll in November last year finding that most Canadians want it to be abolished or reduced.

Conservative Party Leader Pierre Poilievre has put his “axe the tax” catchphrase at the centre of his bid to become Canada’s next prime minister.

The policy came under particular scrutiny late last year when Trudeau announced a carbon tax carve-out for home heating oil.