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Federal Carbon Tax in Canada – What You Should Know

Updated March 19, 2019

On April 1, 2019, the federal government through its Greenhouse Gas Pollution Pricing Act will begin to charge a carbon tax on all fuel consumed in the Province of Ontario. Specifically, the Federal Carbon Tax will be charged on all propane, gasoline, diesel and kerosene products sold by Core Fuels Ltd. The rates are set annually on April 1st as follows:

Propane 3.10 cents per litre, rising to 7.74 in 2022
Natural Gas 5.45 cents per kilo, rising to 13.66 in 2022
Gasoline 4.42 cents per litre, rising to 11.05 in 2022
Diesel 5.37 cents per litre, rising to 13.41 in 2022
Furnace Fuel 5.37 cents per litre, rising to 13.41 in 2022
Stove Oil 5.37 cents per litre, rising to 13.41 in 2022
Kerosene 5.16 cents per litre, rising to 12.91 in 2022
Naphtha 4.51 cents per litre, rising to 12.91 in 2022

These amounts will be included on your invoices in the price you pay for your products. This tax will also be listed on a separate line on your invoice.

It is the legal responsibility of Core Fuels Ltd. / Red Cap Propane Ltd. to both charge & remit the tax to the federal government.

Return completed forms to Core Fuels LTD
(by April 1st)
Fax: 519-272-1991
Attach & email
mail: 219 Lorne Avenue East , Stratford, ON N5A 6S4

What Do I Need to Become Exempt from The Federal Carbon Tax?

  • Eligible farmers must complete form L402 and return it to Core Fuels Ltd.
  • Eligible greenhouse operators must complete form L404 and return it to Core Fuels Ltd.

Please note that we cannot provide fuel exempt from the Federal Carbon Tax unless we have a completed copy of the required form on file. As noted on each exemption form, the original certificate is to be provided to your supplier. Keep a copy of the certificate with your records and do not send the certificate to the Canada Revenue Agency.

What Is Exempt from The Federal Carbon Tax?

Relief for Farmers

Under certain defined conditions, exemptions are available through the use of an exemption certificate.
“Specifically, the GGPPA provides that a registered distributor can generally deliver, without the fuel charge applying, gasoline or light fuel oil (e.g., diesel) to a farmer at a farm, if the fuel is for use exclusively in the operation of eligible farming machinery and all or substantially all of the fuel is for use in the course of eligible farming activities. Under the GGPPA, eligible farming machinery means property that is primarily used for the purposes of farming and that is a farm truck or tractor, a vehicle not licenced to be operated on a public road, or an industrial machine or stationary or portable engine.

The GGPPA also includes diversion rules to ensure that the fuel charge applies if gasoline or light fuel oil is used in a manner contrary to the intended relief. ”**

Partial Relief for Commercial Greenhouse Operators
“Partial relief of the fuel charge (i.e., 80 per cent) is proposed to apply to propane that is exclusively for use in the operation of a commercial greenhouse for growing any plants, including vegetables, fruits, bedding plants, cut flowers, ornamental plants, tree seedlings and medicinal plants. It is also proposed that, in order for relief to be available, all or substantially all of the greenhouse building must be used for the growing of plants.”**

“The relief is proposed to be provided upfront through the use of exemption certificates, similar to other exemption certificates under the GGPPA, such that only 20 per cent of the fuel charge applies to propane that is delivered by a registered distributor to an eligible greenhouse operator if the fuel is exclusively for use in the heating of, or for the production of carbon dioxide for use in the operation of, a commercial greenhouse.”**

An eligible greenhouse operator is proposed to be a person that carries on a greenhouse operation with a reasonable expectation of profit.

We also encourage you to continue to monitor this webpage for further information should we receive additional information or clarity from our industry and government contacts. We will update with any new information should it become available. We also encourage our customers to review the regulation and to understand the expectations and penalties for making a false declaration. If you have questions, contact us (LINK) or let our customer account representatives assist at 519-272-0090 (Stratform) or 226-979-2400 (Alma).

Please also note: The Government of Canada has introduced the new climate action incentive payment. If you are a resident of Ontario, you can claim it when you file your 2018 income tax and benefit return. We share this for your information only as it has no connection to our service to you. You can find out more at Canada.ca/climate-action-incentive.
** Source: Backgrounder: Targeted Relief for Farmers and Fishers, and Residents of Rural and Remote Communities – Department of Finance, Canada