The tax expenditure on petroleum for fossil fuel production in Canada is forecasted to decrease steadily from 2024 to 2028. In 2023, the expenditure stood at a higher level compared to the projected figures beginning in 2024. Notably, from 2024 to 2028, there is a consistent declining trend with the expenditure dropping each year by approximately 8.2% on average, showcasing a five-year compound annual growth rate (CAGR) that is negative.

Future trends to watch for:

Policy changes aimed at reducing fossil fuel reliance could further decrease tax expenditures.
Advancements in renewable energy technology might accelerate this downward expenditure trend.
Potential economic implications on the petroleum industry stemming from reduced government support.