The GNWT has officially announced that as of April 1st, the Northwest Territories carbon tax will be dropped for almost all consumers.
This follows the change in direction on the carbon tax at the federal level under new Prime Minister Marck Carney, mainly to eliminate the federal consumer carbon tax. In the NWT, the only entities that will still be paying the tax are the diamond mines, as they are the Territory’s largest emitters.
The results of this change have been broken down to show the effects it will have on individual residents and businesses.
First, there will be no carbon tax on fuel. Instead, the GNWT will be bringing in at-source rebates through regulations that will eliminate the tax.
The Cost of Living Offset will be discontinued. Since the carbon tax will be removed, so too will the COLO be removed, as it was introduced to help offset some of the increased costs that came with the Tax. The COLO will be officially canceled on July 1st, with eligible residents receiving their final payment in April.
The Community Government Carbon Tax Revenue Sharing Grants will also come to an end on April 1st.
Finally, the largest emitters in the NWT, mainly the diamond mines, will continue to pay the carbon tax and receive partial rebates until the relevant NWT legislation is repealed.
Caroline Wawzonek, the Minister of Finance for the Northwest Territories, said in a statement that “Given the federal government’s new direction and our ability to act quickly through regulation, eliminating the carbon tax for most fuel users is a responsible step that provides immediate relief and certainty for Northerners. We will continue to work with Canada to develop long-term solutions that support affordability, economic growth, and environmental sustainability.”
The GNWT will be working on officially repealing the Petroleum products and carbon tax act, as well as amending the Income Tax Act to finalize all of these changes throughout the month of May through the Legislative Assembly. The total effect of these changes is not expected to take full effect once the Federal Government does the same on a national level.
