The Government of the Northwest Territories will stop collecting carbon tax from customers starting April 1, following the federal government’s new direction.
In a statement Wednesday, the GNWT said it will introduce at-source rebates for all consumers except for the diamond mines, which are currently the territory’s only large emitters.
The mines will continue paying carbon tax but will receive a partial rebate until the NWT’s carbon pricing legislation is repealed.
As a result, grants related to offset carbon tax will be discontinued. The final quarterly Cost of Living Offset payments will be issued in April, with the program officially ending on July 1.
Meanwhile, the Carbon Tax Revenue Sharing Grants will be eliminated in April, but the GNWT will still distribute remaining funds in late 2025-26.
“Eliminating the carbon tax for most fuel users is a responsible step that provide immediate relief and certainty for Northerners,” stated Caroline Wawzonek, Minister of Finance.
The GNWT said it will engage with the federal government to determine next steps for large emitters under Canada’s carbon pricing framework.
