City of Lloydminster calls for pause to federal carbon tax

Lloydminster, AB/SK – Lloydminster City Council is calling upon Prime Minister Justin Trudeau’s Liberal government to immediately pause further increase to the federal carbon tax.

With the next carbon tax increase scheduled to take effect April 1, 2024, Lloydminster Mayor Gerald Aalbers says municipalities need more time to assess how local governments will continue to provide services in the wake of another increase.

“Every day, I have conversations with people who are feeling the financial pinch as the cost of living creeps higher. As a municipality, we face similar challenges in determining how to stretch dollars and provide critical services,” says Mayor Aalbers.

“It would appear the ripple effects of escalating tax burdens have not been fully considered at the federal level, and we – Canada’s municipal leadership – require more time to compile and communicate our challenges. From there, we hope to work with other levels of government to forge solutions that will protect the quality of life for our communities.”

The April 1 increase, if implemented, would see the price on carbon rise from $65 per tonne to $80. It is scheduled to go up another $15 each year until 2030 when it reaches $170 a tonne.

Background:

The carbon tax, also known as a price on carbon, came into effect at $20 per tonne in 2019 and applies to residents in Newfoundland and Labrador, New Brunswick, Nova Scotia and Prince Edward Island, Ontario, Manitoba, Saskatchewan, Alberta, Yukon and Nunavut. The April 1 escalation includes an increase to gasoline prices amounting to approximately three cents per litre. The current carbon tax increase schedule would see gasoline prices increase by approximately 40 cents per litre by 2030.