Saskatchewan filing injunction against CRA over carbon tax dispute

Saskatchewan's Ministry of Justice is taking the Canadian Revenue Agency (CRA) to court for what it says is an attempt by the federal agency to «garnish» from the province's bank account.

The provincial government has only offered details in a video posted to social media that features Justice Minister Bronwyn Eyre leaning heavily on political rhetoric and providing few specifics.

«Now [the federal government is] threatening us again with their favourite move when someone disagrees with them,» said Eyre.

«They're sending the Canada Revenue Agency after the province's bank account.»

In response, the province is filing an injunction against the CRA, Eyre said.

The move is an escalation in the dispute between the two levels of government over the federal carbon levy.

Saskatchewan stopped collecting and remitting the tax on natural gas for home heating in response to the federal government's decision to exempt home heating oil for three years. Home heating oil is primarily used in Atlantic Canada.

Premier Scott Moe announced last year that SaskEnergy, the provincial natural gas utility, would stop collecting the tax starting Jan. 1, 2024.

The province later said SaskPower would do the same for electricity used to heat homes.

According to the province, approximately 370,000 residential SaskEnergy customers use natural gas to heat their homes. That's 85 per cent of homes in Saskatchewan. Thirteen per cent of households heat their homes using electricity, according to the province.

Eyre is set to provide more details during an availability this afternoon.

The CRA and Environment and Climate Change Canada did not immediately respond to a request for comment.