Ottawa exempting home heating oil from carbon tax for 3 years, Trudeau says

The government is creating a carve-out for the carbon tax on home heating oil, Prime Minister Justin Trudeau said.

The government is creating a carve-out for the carbon tax on home heating oil, Prime Minister Justin Trudeau said.

The government will exempt home heating oil from the tax for three years, double the rural supplement in the rebate program and offer new programs Trudeau said will help rural Canadians switch to electric heat pumps.

"This is an important moment where we're adjusting policies so that they have the right outcome. We are doubling down on our fight against climate change and keeping true to the principles that we're supporting Canadians while we fight climate change," Trudeau told a press conference.

While the exemption applies nationwide, Trudeau said the policy will help Atlantic Canada in particular. Thirty per cent of homeowners in the region still use furnace oil to heat their homes.

"We've heard clearly from Atlantic Canadians through our amazing Atlantic MPs that since the federal pollution price came into force ... certain features of that pollution price needed adjusting to work for everyone," he said, surrounded by a number of Liberal MPs from the region.