The Saskatchewan government says its application for an injunction to stop the Canada Revenue Agency from collecting the province's federal carbon tax has been successful.
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Watch;
https://globalnews.ca/video/10611565/saskatchewan-wins-injunction-to-block-cra-from-collecting-carbon-tax/
"The court has ruled in our favour and stopped the federal government from unconstitutionally seizing money pending the full hearing and decision on whether to uphold the injunction by the Federal Court," Bronwyn Eyre, the province's justice minister and attorney general, said Monday.
Eyre said the seizure of a provincial bank account violated section 126 of the Canadian Constitution. The matter will now go to a full hearing.
The showdown between the province and the federal government has been brewing since late 2023, when Premier Scott Moe announced there would be no carbon tax on electric heaters in Saskatchewan following the federal decision to exempt the residential carbon price in Atlantic Canada.
Moe called the exemption unfair and politically motivated and said Saskatchewan should get a similar exemption for natural gas.
Even though Saskatchewan has stopped collecting the federal carbon price on natural gas, the province's residents will continue to receive carbon rebate cheques.
Warnings in effect as the remnants of Hurricane Beryl hit parts of Canada.
Eyre said the government has threatened to cancel refunds, impose fines or even bring charges against Saskatchewan executives.
In April, the Canada Revenue Agency announced it would audit the province for nonpayment of carbon taxes.
Prime Minister Justin Trudeau said the CRA is "very, very good" at collecting amounts owed and wished Moe "the best of luck" working with the agency.
Trudeau has defended his decision to exempt users of diesel for heating homes, saying diesel is more expensive than natural gas. Rule out offering exemptions to other users.
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