The scheduled hearing on Saskatchewan’s request to halt the collection of carbon tax has been cancelled. The province had filed a court application in December 2020, seeking an injunction to stop the federal government from collecting the carbon tax. However, the hearing, which was set for March 25, 2021, has been cancelled due to the ongoing COVID-19 pandemic.
The province’s application argued that the federal carbon tax is unconstitutional and that it unfairly targets Saskatchewan’s energy sector. The province also claimed that the tax would have a negative impact on the economy and would not effectively reduce greenhouse gas emissions.
The federal government, on the other hand, argued that the carbon tax is a necessary measure to combat climate change and that it is within their jurisdiction to implement it. The government also stated that the tax would be revenue-neutral, with the collected funds being returned to the provinces.
The cancellation of the hearing comes after the Supreme Court of Canada ruled in March 2021 that the federal carbon tax is constitutional. The court’s decision was a blow to the province’s case, as it had previously lost a similar challenge in the Saskatchewan Court of Appeal.
Saskatchewan Premier Scott Moe expressed disappointment at the cancellation of the hearing, stating that the province will continue to fight against the carbon tax. He also called on the federal government to work with the provinces to find a more effective and fair solution to reduce emissions.
The federal government has stated that it will continue to work with the provinces to implement the carbon tax and address climate change. The tax is currently in effect in Saskatchewan, along with four other provinces that did not have their own carbon pricing plans.
The cancellation of the hearing means that the federal carbon tax will remain in place in Saskatchewan for the time being. The province may still pursue legal action in the future, but for now, the focus remains on addressing the ongoing pandemic and its impact on the economy.