Wednesday, February 14, 2024

Carbon tax exemption still uncertain

Bill C-234 is back in the House of Commons, but its fate remains uncertain because of intense political wrangling between the Conservatives and Liberals.

The bill was introduced last year by Conservative Member of Parliament Ben Lobb of Huron-Bruce, and passed the House of Commons with a comfortable majority.


It would exempt farmers from paying the carbon tax on natural gas and propane to dry grain and heat barns and greenhouses.


When it got to the Senate, Liberals pushed through amendments to strip out barns and greenhouses and change the exemption from eight years to three.


Conservative leader Pierre Polievre has been railing against the carbon tax and is using Bill C-234 in an effort to achieve a partial victory. He may propose amendments which would send the bill back to the Senate and further delay the exemptions farmers want.


Now the Parliamentary Budget Office (PBO) has put price tags on the two versions of Bill C-234.


As originally proposed by Lobb, it would benefit farmers by about $115 million a year, the PBO  said.


As amended in the Senate, that would be reduced to $26 million a year.


Farm organizations from across Canada have been urging politicians to get on with passing the bill as presented by Lobb.