Sask. becomes first carbon tax free province

Premier Moe’s government removed the industrial carbon tax on April 1

As of April 1, Saskatchewan residents no longer pay carbon tax.

On March 27, Premier Scott Moe announced a pause on the industrial carbon tax would begin on April 1.

"Today, we are making Saskatchewan the first carbon tax free province in Canada," Premier Moe said in a statement. "In taking the lead on the removal of this harmful tax, we hope all federal leaders will support our position and allow the provinces to regulate in this area without imposing the federal backstop."

This decision coincides with Prime Minister Carney’s decision to remove the consumer carbon tax beginning April 1.

The Agriculture Carbon Alliance applauded the prime minister’s decision and hopes all carbon taxes will be removed for farmers.

“We hope this will come through legislative action once Parliament has resumed,” Dave Carey, co-chair of the ACA, said in a statement.

These carbon tax removals could result in significant savings for Sask. producers.

In 2021, the Agricultural Producers Association of Saskatchewan estimated grain farmers paid about $2.93 per acre in carbon taxes.

Those costs rose to $5.17 per acre in 2023.

In 2024, Saskatchewan producers seeded 37.62 million acres, meaning they paid almost $195 million in carbon taxes.

To put that number into perspective, a superyacht called Sophia is valued at around $200 million.

The superyacht Sophia (BurgessYachts.com photo)

APAS estimated the carbon tax per acre would’ve increased further to $13.51 per acre in 2030.

Other provinces could be looking at removing carbon taxes too.

Alberta is exploring three options, The Narwhal reported, citing an email from the Canadian Renewable Energy Association.

One option is to do away with the current carbon tax plan and encourage companies to invest in technologies to reduce emissions.

B.C. and Manitoba still have the industrial carbon tax.