Anyone who uses home heating oil will not have to pay carbon tax on it as of April 1.
The news was released Tuesday evening by way of press release.
Subsidies for heating oil purchased up until March 31 will receive rebates.
“We need flexibility on the application of the Federal carbon tax in the Northwest Territories, particularly with respect to heating fuel, to avoid raising the cost of living for residents and creating more barriers to Northern economic development,” said Finance Minister Caroline Wawzonek in the Feb. 6 press release. “We will continue to advocate for the introduction of a carbon tax model in which Canada fully recognizes the challenges faced by residents and businesses in the Northwest Territories and asks those who have benefited most from historic greenhouse gas emissions for more meaningful support towards a green energy transition for those regions who are now on the front lines of climate change.”
All other forms of home heating fuel, including propane and natural gas, will continue to have carbon tax levied on it and receive quarterly subsidies to compensate in Cost of Living Offset (COLO) payments.
These are adjusted based on the average carbon tax paid by NWT households and are releassed every July, October, January and April to anyone who has filed their annual income tax returns.
As the NWT has its own carbon tax regime instead of simply using the federal system, the GNWT is able to collect carbon tax as revenue, which it uses to fund localized solutions. An example the press release notes the GNWT has increased funding for both energy audits and rebates, as well as providing support for community biomass projects.
The suspension of carbon tax on home heating oil will run from April 1, 2024 until March 31, 2027.