N.L. politicians applaud Trudeau's 3-year suspension on carbon tax for home heating fuel
Tax will be paused Nov. 9 until April 2027
Two Newfoundland and Labrador politicians who pushed hard for home heating oil to be excluded from the federal carbon tax say a three-year pause is a great step forward.
Prime Minister Justin Trudeau announced the pause Thursday, saying the move was made to help Atlantic Canadians with the cost of living. He also unveiled other programs that will help move homes away from oil heat in favour of heat pumps.
The pause will begin in 13 days and last until March 31, 2027. For households that burn oil, it will mean an average $250 savings at the fuel's current price, the federal government said in a press release.
Newfoundland and Labrador Premier Andrew Furey was unavailable for an interview Thursday evening, but posted a statement on X, the platform formerly known as Twitter, thanking Trudeau for the decision.
Furey has been vocal in pleading with Ottawa to exempt home heating oil from the tax, saying it disproportionately affects Atlantic Canadians.
"After all our hard work, I am glad the prime minister has listened and recognizes the impacts of the carbon tax on our region, as he has taken a positive step towards helping Atlantic Canadians with affordability," the statement reads.
"The federal government has finally made some of the necessary changes, including removing the carbon tax on home heat. This is a good day for our province."
Ken McDonald, the federal Liberal MP for the Avalon riding, told CBC News shortly after the announcement that he's pleased by the decision.
McDonald has made national headlines for his effort to help residents of Newfoundland and Labrador tackle the cost of living, voting with the Conservatives on two separate occasions on a vote to repeal the tax.
"I know it was probably hard to expect it to be cancelled completely, but I think the prime minister hit the right note by pausing it for three years," McDonald said. "So I'm very pleased with that, and I said so to the prime minister yesterday."
McDonald said he hopes the ban will take effect soon, and added that other announcements — like the doubling of the climate action incentive top-up in rural areas to offset fuel expenses — will also have a positive impact.
"The doubling of the rebate … is going to be a great help to people who live in rural areas," he said.
"Whether they're using it to buy home heating fuel or whether they're using it to put groceries on the table, I'm very delighted in what was announced today."
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