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Canada Carbon Tax Now in Force

Pete Scott - May 08 2019
Published in: Public Policy

In June of 2018 Canada adopted a “carbon tax” designed to add to the costs of greenhouse gas emissions (GHG).  The tax is intended to encourage users to reduce use of carbon fuels and invest in clean technologies.  As of April 1, 2019, the tax is in effect in several provinces.  They include Manitoba, New Brunswick, Saskatchewan, and Ontario.  On July 1, 2019, Nunavit and Yukon will also be subject to the law.

The law requires that those provinces impose a minimum price of $20 per ton of pollution emissions for any fuel used or brought into the jurisdiction.  As the tax translates to actual users, individuals are expected to experience a price increase of about 4.4 cents per liter of fuel sold at pumps. 

Road carriers also become subject to some new requirements and possible tax payments.  They are required to register with the Canada Revenue Agency as of March 31, 2019 (June 30, 2019 in Ninavit and Yukon).  The carriers are then required to report the type of fuel used and file a quarterly report with the CRA.  The report includes the amount of fuel and the number of miles traveled in each of the provinces subject to the tax.  Those reports will be used to determine whether a carrier owes the tax.  Failure to register carries a penalty of up to $2,000.

How This Impacts Mobility

Companies with business or employees in Canada will experience cost increases for fuel, as well as additional costs related to shipping household goods in Canada.