The forecasted tax expenditure on petroleum for fossil fuel production in Canada shows a consistent decline from 2024 to 2028. Starting from 261.75 million USD in 2024, the expenditure decreases annually, reaching 69.69 million USD by 2028. This portrays a clear trend of reducing tax benefits in this sector. Year-on-year variations are significant, dropping approximately 19% in 2025, 23% in 2026, 29% in 2027, and 40% in 2028. The CAGR over the five years stands at about -27%.
Future trends to monitor include shifts in government policy towards renewable energy incentives, potential technological innovations in fossil fuel extraction reducing costs, and external geopolitical factors affecting global oil prices, which might influence these fiscal policies.
