How does this Greenhouse Gas Pollution Pricing Act affect Road Carriers?

As part of a Green Initiative the federal government is imposing a charge on fuels

How does this Greenhouse Gas Pollution Pricing Act affect Road Carriers?

The Canadian Liberal government has put a big push on Canada becoming more environmentally friendly. Part of that initiative has been to introduce the Greenhouse Gas Pricing Act. While there are two parts to this new act (the first one applying to industrial facilities), the second part is the one that concerns us here at PSTC as it applies to fuel and combustible waste.

Road carriers who use fuel that is gasoline, light fuel oil, marketable natural gas, or propane in a commercial vehicle and travels to and from one or more of the listed provinces are among those drivers affected by this new act.

Those that register (either mandatory or voluntary) as road carriers, will then need to provide reports to the CRA on a quarterly basis.

Which are the listed provinces getting a federal fuel charge?

This new Greenhouse Gas Pollution Pricing Act has developed a pricing system that affects provinces and territories that have declined to come up with their own provincial Carbon Tax system. Therefore, as of April 1, 2019, the federal fuel charge is applicable in Saskatchewan, Manitoba, Ontario, and New Brunswick. Soon to follow will be Nunavut and Yukon as of July 1, 2019.

So, you drive to the listed provinces, what does this mean for you?

If you drive inter-jurisdictionally to a listed province then you may need to register with the Canada Revenue Agency (CRA) for the fuel charge.

What if you do business only within a listed province?

If you never leave your listed province/territory as a commercial carrier, then you do not need to register.

I’m from the United States, do I need to register?

If you plan on driving in one of the listed provinces or territories, then yes you will need to register. In order to do this, you will need a Canada Revenue Agency Business Number (BN9). After that, you can register as a road carrier for the fuel charge program. Your records must be kept in either English or French, and be provided to the CRA, should they ever request them.

Great another tax. How much is this costing?

If you care to see how the rates are configured for various fuel sources and how they are projected to increase over the next 2 years check out the Government of Canada’s site.

How do I register?

You will have to register by filing form L400 and L400-2. After this you will have to file a quarterly return similar to IFTA. Purchases of fuel within a listed province will be inclusive of the charge. Consequently, fuel that is purchased at a retail outlet in a listed province but used outside the listed province may be eligible for a rebate.

More Information

Government of Canada Pollution Pricing Act 

Registration Information

Form L400

Form L400-2