2023-08. Financial Relief from Effects of Carbon Tax

Year: 2023


Whereas the Carbon Tax is now showing its effects on municipalities in Saskatchewan; and

Whereas there is a significant negative impact on municipal budgets and the ability for municipalities to continue to provide services to residents; and

Whereas municipalities will require significant tax increases to maintain the status quo provision of services to residents and municipal operations.

Therefore be it resolved that SUMA advocate the Federal and Provincial Government to provide additional relief to municipalities to protect them from the effects of the Carbon Tax, either through municipal revenue sharing or some other measure, to ensure the sustainability of our hometowns.


Acts affected: None

Regions/Sectors: ALL

Provincial Response

Dear Randy Goulden:

Thank you for your May 11, 2023, letter regarding a number of resolutions made at the Saskatchewan Urban Municipalities Association's (SUMA) 118th Annual Convention.

With respect to the SUMA resolution to provide additional relief to municipalities from the effects of the federal carbon tax Fuel Charge, the Saskatchewan Government understands that the federal Fuel Charge has had a significant impact on municipal budgets. I would urge SUMA to continue to lobby the federal government to reinstate some version of its Climate Action Incentive Fund (CAIF). CAIF provided 10.0 per cent of the federal Fuel Charge revenue back to municipalities, universities, hospitals and schools (MUSH sector), Small and Medium Size Enterprises (SMEs), and Indigenous Communities. The program was unilaterally ended by the federal government in March 2021 and replaced with a new program that returns none of this revenue to the MUSH sector.

Thank you for providing me with the opportunity to comment on these SUMA resolutions.



Donna Harpauer Deputy Premier and Minister of Finance


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