The forecasted tax expenditure on all fossil fuels for residential use in Canada shows an increasing trend from 2024 to 2028, starting at $249.42 million in 2024 and reaching $278.65 million by 2028. This reflects a steady year-on-year growth: 2.95% from 2024 to 2025, 2.85% from 2025 to 2026, 2.76% from 2026 to 2027, and an expected 2.68% increase from 2027 to 2028. The average compound annual growth rate (CAGR) for this period is approximately 2.81%.
With the growing emphasis on energy efficiency and potential changes in environmental policies, it is vital to monitor shifts in government subsidies, the adoption of renewable energy sources, and how these factors might impact fossil fuel tax expenditures in residential sectors in the coming years.
