Mark Carney just axed the carbon tax — Here's what happens to the April rebate payment

Mark Carney wasted no time making his first big move as prime minister of Canada.

Just hours after being sworn in on Friday, he signed an order eliminating the federal carbon pollution pricing on consumers — better known as the carbon tax — following through on a key promise he made during his Liberal leadership bid.

"Consistent with the promise that I made and others supported during the leadership campaign, we will be eliminating the Canada fuel charge — the consumer fuel charge — immediately. Immediately," Carney said to reporters gathered in the cabinet meeting room on Friday afternoon.

As Carney signed the order, he made it clear that Canadians who have been receiving the Canada Carbon Rebate will still get their next one. "We will be ensuring that those Canadians who have received rebates will continue to receive a rebate in the next quarter," he confirmed.

The Canada Carbon Rebate, previously known as the Climate Action Incentive Payment, is a quarterly tax-free benefit that helps Canadians cover the costs of federal pollution pricing. It offers up to $270 for individuals in select provinces, including Ontario and Alberta, in an effort to offset the financial impacts of the carbon tax.

Most of the provinces and territories that don't participate in the CCR have their own programs for redistributing the funds.

The next carbon rebate payment is set to roll out on April 15. So, if you were counting on that cash landing in your account, you're still in luck — for now.

Meanwhile, Conservative Leader Pierre Poilievre wasted no time calling out Carney, accusing him of playing politics with the tax.

"Carbon Tax Carney is pausing the carbon tax until after the election when he no longer needs your vote but still needs your money," Poilievre wrote on X on Friday afternoon.

Speaking to reporters earlier on Friday, Poilievre also argued that Carney can't actually abolish the tax without recalling Parliament.

"Until Parliament is recalled, this carbon tax law will be the law of the land," he said. "What he might do is hide the carbon tax by telling CRA to stop collecting it for two months before the election."

Carney, for his part, framed the decision as part of a broader plan to help struggling Canadians while still keeping climate policies in place.

"This will make a difference to hard-pressed Canadians, but it is part of a much bigger set of measures that this government is taking to ensure that we fight against climate change, that our companies are competitive and the country moves forward," he said.

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