The Federal Court has granted an injunction order to stop the Canada Revenue Agency from collecting outstanding federal carbon tax payments from Saskatchewan, the province has announced.
The Saskatchewan government filed an emergency application July 5 to prevent the Canada Revenue Agency (CRA) from collecting the home heating carbon tax levies the province has not paid since January.
Premier Scott Moe and his government made the decision last year to begin withholding the home heating portion of its carbon tax payments as of Jan. 1.
The move was in protest of the federal government’s refusal to exempt all forms of home heating from the tax after granting an exemption for home heating oil last fall. The exemption largely benefited Atlantic Canada but did little to help Saskatchewan where the primary heat sources are natural gas, propane, and electricity.
The CRA put Premier Moe and his government on notice in April when it announced it would audit the province for not paying the carbon levies.
Attorney General Bronwyn Eyre, who has previously described the CRA’s actions as “unfair” and “unconstitutional,” announced July 7 that the province’s bid to block the CRA from seizing provincial funds was successful.
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