OTTAWA — Prime Minister Mark Carney claimed Monday that the industrial carbon tax has no effect on grocery prices, drawing a sharp rebuttal from the Canadian Taxpayers Federation..“The industrial carbon tax impact on groceries is zero,” Carney told the House of Commons after Conservative Leader Pierre Poilievre accused the government of increasing costs for businesses and consumers.Poilievre opened his question by criticizing the government’s planned increase to industrial carbon pricing and pointing to new findings from the Canadian Federation of Independent Business.“He’s increasing the industrial carbon tax,” Poilievre said. “Will he reverse his inflationary policies so we can bring down the costs on our small businesses, consumers and workers?”Carney rejected the connection between industrial carbon pricing and grocery bills.“The impact on fuel prices is zero,” he added. “This government is cutting taxes for business.”.Franco Terrazzano, federal director of the Canadian Taxpayers Federation, disputed Carney’s claim in comments to the Western Standard.“It doesn’t matter what lipstick politicians put on their carbon tax pig, all carbon taxes make life more expensive, hurt our economy and don’t work,” Terrazzano said.“Canadians understand that carbon taxes on refineries make it more expensive to drive, carbon taxes on fertilizer plants make it more expensive to eat and carbon taxes on electricity make it more expensive to live.”Terrazzano pointed to a Leger poll commissioned by the CTF in December 2025.The survey found 43% of respondents believed businesses passed most industrial carbon-tax costs to consumers, while another 25% believed some costs were passed along. Twelve per cent said businesses absorbed most of the cost, while 20% were unsure.“Polling shows that Canadians understand that a carbon tax on Canadian businesses means higher prices for Canadian consumers,” Terrazzano said.“People know carbon taxes are deliberately making their lives more expensive. They are not being fooled.”Industrial carbon pricing applies to large emitters and is separate from the federal consumer carbon levy, which Carney reduced to zero in 2025.Carney has previously cited Canadian Climate Institute research estimating that industrial carbon pricing has an effect on food prices of “around zero per cent.”Monday’s exchange came as CFIB reported that 22% of small businesses described their condition as weak or critical.Only 18% of surveyed owners said they would recommend starting a business under current conditions, while 50% said they would not.Among those advising against starting a business, 88% cited high operating costs, 86% pointed to economic uncertainty, 65% cited taxes and 53% identified the regulatory burden.CFIB called on Ottawa to reduce the federal small-business tax rate from 9% to 6%, increase the small-business deduction threshold and reduce federal regulation.
