The forecasted tax expenditure on all fossil fuels for producers in Canada shows a slight annual decrease, with the share of GDP declining from 0.056% in 2024 to 0.053% by 2028. This represents a nominal year-on-year decrease of approximately 1.8%. The compound annual growth rate (CAGR) over the forecasted period reflects a consistent decline in tax expenditures as a share of GDP.
Future trends to watch for include policy changes aimed at reducing fossil fuel subsidies, shifts in government spending priorities towards greener energy alternatives, and potential economic impacts of broader climate commitments or regulations. Monitoring these factors will be essential for assessing fiscal and environmental policy outcomes in Canada.
