Prime Minister Mark Carney has signed an order to eliminate the consumer carbon tax.
The Liberal leader said the move will take effect "immediately."
"This will make a difference to hard-pressed Canadians," he said, "but it is part of a much bigger set of measures that this government is taking to ensure that we fight against climate change, that our companies are competitive, and the country moves forward."
Carney noted that those who already qualified for rebates this quarter would still receive them.
The carbon tax was first implemented in 2019 by Justin Trudeau. In the years since, it has become a contentious issue, dividing public opinion. Conservative leader Pierre Poilievre repeatedly called on the Liberals to do away with the tax, and made it a central focus of his campaign ahead of the upcoming election.
During a press conference following Carney's swearing in, Poilievre predicted that Carney would pull off a "carbon tax con job" if elected.
"There would be a bigger carbon tax than ever before," he said, "because Carney would no longer need your vote, but he'd still need your money."
The Canadian Taxpayers Federation celebrated the move, but gave none of the credit to the government, arguing that it was the people of this country who forced it through.
"Here's a message to politicians," CTF Federal Director Franco Terrazzano said. "Canadians don't want the carbon tax kind of gone. Canadians want all carbon taxes completely gone, and Canadians will be watching you after the next election to make sure that you don't get back into office and crank up the carbon tax again."