The forecasted tax expenditure on fossil fuels in Canada is showing a consistent decline from $1.26 billion USD in 2024 to $0.73942 billion USD by 2028. Relative to 2023, where the expenditure stood at $1.39 billion USD, the year-on-year reductions are 10.07% in 2025, 12.11% in 2026, 12.97% in 2027, and 14.48% in 2028. The compound annual growth rate (CAGR) over this period is forecasted at -13.62%, indicating a significant reduction in fossil fuel subsidies.
Future trends to watch for:
- Potential government policy shifts towards renewable energy subsidies
- Impact of global climate agreements on domestic tax expenditures
- Technological advancements that could alter energy consumption patterns
