Federal Fuel Charge (Carbon Tax)

March 7, 2019
Federal Fuel Charge (Carbon Tax)

The new Federal Fuel Charge (Carbon Tax) will be effective April 1, 2019 in Saskatchewan, Manitoba and Ontario and July 1, 2019 in Nunavut and Yukon (collectively referred to as "Listed Provinces"). The Fuel Charge rates are as follows for the most commonly sold fuel products:

  April 1, 2019 April 1, 2020 April 1, 2021 April 1, 2022
Gasoline  0.0442 0.0663 0.0884 0.1105
Kerosene  0.0516 0.0775 0.1033 0.1291
Diesel  0.0537 0.0805 0.1073 0.1341
Propane 0.0310 0.0464 0.0619 0.0774

Exemptions for Farmers

There is also an exemption for fuel that is sold to a farmer if and only if all of the following criteria are met:

  1. the fuel is "qualifying farm fuel" (which is defined as gasoline or diesel that is for use exclusively in the operation of eligible farming machinery and that all or substantially all of the fuel is for use in the course of eligible farming activities). [Note that propane is not exempt for farmers];
  2. the fuel is delivered to the farmer at a farm (no exemptions at a cardlock or gas bar);
  3. all or substantially all of the fuel is for use in the course of eligible farming activities; AND
  4. the farmer provides (and the seller retains) an exemption certificate in this regard.

Each qualified farmer customer should complete this form as soon as possible and provide it to their Retail (who must keep it on file) and retain a copy for themselves. This is the link to the form: https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/l402/l402-fill-19e.pdf

Please send in the completed exemption certificate to d.antonovitch@southlandco-op.ca or fax to (306) 642-4936.