Ottawa's Export Tax Plan Risks Albertan Backlash

Alberta's energy industry is facing potential new hurdles from Ottawa, which is considering imposing an export tax on Alberta oil and gas exports to retaliate against the US.

This proposal has sparked concerns that it could face constitutional and CUSMA barriers, hurt Alberta producers and royalties, and risk reviving separatist anger just weeks before the province's October referendum vote.

Proponents of an export tax argue that it would raise 'close to $25 billion' a year, but critics point out that this idea belongs to climate activist Seth Klein, who proposed a 15 per cent tax on exported energy resources.

The Supreme Court has already struck down similar taxes in the past, citing Section 125 of the Constitution, which prohibits taxing property belonging to provinces. Alberta owns 81 per cent of its mineral rights, making it exempt from Ottawa's taxing power.