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Carbon price grievances end in doubled returns to Indigenous governments — not exemptions – Canada’s National Observer

April 18, 2024

After facing severe political blowback for its carbon tax exemption on oil last fall, Ottawa is caving to complaints for a second time and doubling rebates for First Nation governments.

Exemptions remain off the table for First Nations. However, in Tuesday’s budget, Ottawa did go part way to meet their demands by increasing the amount First Nations governments receive from carbon-pricing payouts to two per cent starting this year. For First Nations in Ontario that will mean a rebate jump from $56.6 million in 2023 to $135.5 million this year.

The federal government had promised not to give further exemptions after announcing a three-year carbon tax exemption last October for home heating oil and higher carbon tax rebates for people in rural areas. Those measures were intended to bring relief amid soaring costs of living.

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