Carney cuts carbon tax in first move as prime minister

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Published: March 14, 2025

Prime Minister Mark Carney announces the elimination of the carbon tax.

REGINA — Prime minister Mark Carney has eliminated the consumer carbon tax.

Just hours after he and his cabinet were sworn in March 14 and held their first meeting, he made good on his election promise to cut the tax.

“This is a cabinet focused on action. It’s focused on getting more money in the pockets of Canadians,” he said.

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“Based on the discussion we’ve had and consistent with the promise I made and others supported during the leadership campaign, we will be eliminating the consumer fuel charge immediately and we will be ensuring that those Canadians who have received rebates will continue to receive rebates in the next quarter.”

Those rebates are due to arrive before the end of April.

Carney said this will help Canadians who are struggling to make ends meet. But he also said it is part of a much bigger set of measures the government will take to “ensure we fight against climate change, that our companies are competitive and the country moves forward.”

The Canadian Taxpayers Federation noted the tax is currently 17 cents per litre of gasoline, 21 cents per litre of diesel and 15 cents per cubic metre of natural gas, and that the Parliamentary Budget Officer found it cost the average family $399 more than the rebates they received.

Conservative leader Pierre Poilievre said Carney is only pausing the tax until after the election.

“He’s flip-flopping on his beliefs to trick Canadians into a fourth Liberal government,” he said on social media.

Contact karen.briere@producer.com

About the author

Karen Briere

Karen Briere

Karen Briere grew up in Canora, Sask. where her family had a grain and cattle operation. She has a degree in journalism from the University of Regina and has spent more than 30 years covering agriculture from the Western Producer’s Regina bureau.

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