It sounds like an April Fools' joke to taunt Liberal-weary Canadians — but the consumer carbon tax is cancelled as of Tuesday and Alberta Premier Danielle Smith is giving Conservative Leader Pierre Poilievre credit.
On March 14, Prime Minister Mark Carney cancelled Canada's consumer carbon tax, effective April 1, fulfilling a Liberal leadership promise. Liberals touted the tax as planet-saving and shamed critics as "climate deniers."
The move follows years of pressure from Conservatives and reflects Carney's desire to win the federal election on April 28 — he remains committed to industrial carbon taxes.
Signed via a prime ministerial directive, the move ended a divisive policy criticized by Conservatives, with rebates continuing until April.
"After years of relentless pressure from Pierre Poilievre and provincial conservative governments across the country, the Liberal/NDP coalition in Ottawa has finally scrapped its punishing consumer carbon tax which made Canadians poorer," wrote Smith on X.
Starting today, Albertans will save 17.6 cents per litre on gas and diesel and $4 per gigajoule on home heating — putting hundreds of dollars back in the pockets of residents, said Smith.
"That's an average of $215 per year in fuel savings and $480 per year in home heating savings. We expect retailers to pass on these savings in full. We are watching and will hold them accountable so Albertans get the tax break they deserve."
The consumer carbon tax was considered inflationary because it directly increased the cost of fossil fuels like gasoline, diesel, and natural gas, which are widely used across the economy.
By raising the price of these energy sources, the tax elevated production and transportation costs for businesses, which were often passed on to consumers in the form of higher prices for goods and services.