Canada introduces new fuel tax in select provinces

Additional fee part of a greenhouse gas program

Posted March 20, 2019

International Fuel Tax Agreement (IFTA) licensees were recently made aware of a new fuel charge in select Canadian provinces and territories that will take effect at the start of next month.

The Canadian government introduced the fuel charge as part of its Greenhouse Gas Pollution Pricing Act, which is being administered by the Canada Revenue Agency (CRA). Motor carriers providing commercial transportation of individuals or goods into, or travel through, the provinces of Manitoba, New Brunswick, Ontario, and Saskatchewan or the territories of Nunavut and Yukon are required to register with the CRA and are subject to the new charge.

Carriers should note that the charge and its return filing are in addition to IFTA’s quarterly filings.

Registration deadlines for the filings are:

  • March 31, 2019 for travel into Manitoba, New Brunswick, Ontario, and Saskatchewan provinces; and
  • June 30, 2019 for Nunavut and Yukon territories.

The fuel charge is expected to take effect April 1, 2019, for the provinces and July 1, 2019, for the territories.

Failure to register by the application deadline could result in a $2,000 penalty.

Visit canada.ca for more information, including registration forms and fuel charge notices, or email fuelcharge@cra-arc.gc.ca for more information.


Transport Compliance for Canada ManualJ. J. Keller's Transport Compliance for Canada Manual provides easy access to practical "how-to-comply" explanations of federal and provincial motor carrier safety regulations.

 

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