CTF calls on Liberal leadership hopefuls to scrap carbon tax

With the Liberal Party gearing up for its leadership race, the Canadian Taxpayers Federation (CTF) is urging all candidates to commit to eliminating the carbon tax.

The call comes ahead of a planned carbon tax increase set for April 1.

“This was Prime Minister Justin Trudeau’s costly failure, and the carbon tax should go out the door with him,” said Kris Sims, CTF Alberta Director.

“Why would the next Liberal leader want to keep this political millstone and continue to punish taxpayers whenever they fill up at the gas station or pay their home-heating bill?”

The new Liberal leader will face a critical decision as Parliament resumes on March 24, with opposition parties vowing to immediately topple the government and trigger an election.

The scheduled carbon tax hike would take effect days later, potentially creating a political flashpoint.

“A carbon tax hike in the first days of an election will absolutely infuriate taxpayers,” said Sims.

“And pausing that hike would be a half measure that taxpayers would view as a silly pre-election gimmick. The next Liberal leader is facing a stark choice: kick off the election by hiking the carbon tax or scrap the failed scheme completely.”

The carbon tax, already a contentious issue, is set to rise to 21 cents per litre of gasoline, 25 cents per litre of diesel, and 18 cents per cubic metre of natural gas after the April increase. At those rates, the tax will cost Canadians approximately:

• $15 extra to fill a minivan

• $27 extra to fill a pickup truck

• $250 extra to fill a big rig truck

• $390 more on average in annual natural gas home heating bills

CTF cited a 2024 report from the Canadian Trucking Alliance estimating that the carbon tax added $2 billion in costs to the long-haul trucking industry.

The Parliamentary Budget Officer (PBO) has also confirmed the carbon tax will cost Canadian farmers $1 billion over the next five years and that the average Canadian family pays more in carbon tax than they receive in rebates.

“The carbon tax makes Canadians pay more for everything, from fuel to food,” said Sims.

“Continuing to punish Canadians with the pointless carbon tax would be political suicide, so taxpayers expect anyone hoping to become prime minister to immediately commit to scrapping the carbon tax.”

A 2024 Leger poll showed 69% of Canadians opposed the last carbon tax increase, underscoring the tax's unpopularity as leadership candidates prepare their platforms.