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Fiscal hole looms for Saskatchewan with carbon tax pause: Sask NDP

The Saskatchewan government is being criticized by the opposition NDP that the provincial pause on the industrial carbon levy will open a fiscal hole of over $400 million in the government’s budget.

On Mar. 19, the government calculated there would be a surplus of $12 million this year. This included $431 million to be collected from the industrial carbon tax.

“People didn’t believe it a week ago and they certainly don’t believe it today, when (the province) has just blown a half-billion-dollar hole in the budget,” said NDP leader, Carla Beck, speaking to reporters.

Premier Scott Moe said on X.com on Wed. Mar. 26 that from April 1, the government will not submit the tax making Saskatchewan “the first carbon tax free province in Canada.”

Moe is still touting a surplus saying the removal of the industrial carbon tax will have “an immaterial effect on the budget.”

The premier sees immediate savings on power bills and long-term cost reductions on consumer purchases that have the industrial carbon tax built into their prices.

The 2025-26 budget was passed on Mar. 27.

The government said it will continue to engage with industry on the future of its Output-Based Performance Standards Program which is a carbon pricing system for large industrial emitters offering federal carbon tax exemptions for industries that are enrolled.

Related reading: Saskatchewan to become carbon tax free: Moe – Mar. 27

Gerry Lampow
Gerry Lampow
Gerry has lived in Lloydminster since winter 2010. That detail is important as coming from the Caribbean he did not see green grass until May. Now an Alberta/Western Canada resident, you would be hard-pressed to find a stronger proponent of Lloydminster than the news guy that appreciates a healthy dose of rock music and dress code leather. His mantra is focus on one thing and do it well.
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