Home CANADA Ontario’s top court to rule on constitutionality of federal carbon tax

Ontario’s top court to rule on constitutionality of federal carbon tax

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Face of Nation : Ontario’s top court is set to release a decision Friday on whether the federal government can impose a carbon tax on provinces it believes aren’t doing enough to fight climate change.

The Court of Appeal heard arguments about the federal carbon tax over a period of four days in April, with the Ontario government saying it is unconstitutional and can’t be legally enforced.

In a rare move, the court allowed the legal battle to be televised — the first time in more than a decade cameras were allowed into an appeal court to livestream an event. 

Lawyers for the province argued the tax would allow Ottawa to step into areas of provincial authority. Ontario Premier Doug Ford has dubbed it “the worst tax ever.”

The court challenge is just one of the ways Ontario’s provincial government has sought to push back on the tax. It has also mandated gas stations to display anti-carbon-tax stickers on their pumps, along with taking out ads on radio and television against it.

Ford has previously said that if carbon tax opponents lose in the courts, they will win at the ballot box in October.

Federal Conservative Leader Andrew Scheer has vowed to scrap the carbon tax if his party forms the government after the general election.

Ontario isn’t the only province pushing back against the tax. Saskatchewan’s government lost a similar court challenge last month and is now appealing the ruling to the Supreme Court of Canada.

The federal tax has been imposed on provinces that have not implemented, or have scrapped, their own carbon levies: Ontario, New Brunswick, Saskatchewan and Manitoba. All but New Brunswick have gone to court over it.

Alberta has also filed a reference case with its Court of Appeal, asking for a legal opinion on the constitutionality of the carbon tax. The levy takes effect in that province on Jan. 1, 2020.

The tax is expected to cost to a typical Canadian household $258 this year and $648 by 2022.

The federal government is providing rebates and had estimated the average rebate would be $300 in Ontario. 

But the Canada Revenue Agency said earlier this month that the average payment was $203 in the province.