The tax expenditure on coal for fossil fuel production in Canada demonstrates a significant declining trend from 2024 onwards. Starting at 9.28 million USD in 2024, it steadily decreases to 2.1 million USD by 2028. This represents a substantial year-on-year reduction, with decreases of approximately 19.53% from 2024 to 2025, 24.23% from 2025 to 2026, 31.73% from 2026 to 2027, and 45.88% from 2027 to 2028. Over these five forecasted years, the compound annual growth rate (CAGR) suggests an average annual decline highlighting a shift in fiscal priorities.
Future trends to watch include ongoing environmental policy developments and potential transitions to renewable energy sources. These could further decrease tax expenditures on coal if renewable energy adoption accelerates or if there are new regulatory changes incentivizing cleaner energy production. Additionally, global coal demand fluctuations might impact domestic fiscal strategies.
