On April 1, 2019, the Federal Government will be implementing a Federal Fuel Charge on all fuel sales in Saskatchewan, Manitoba and Ontario. The only exemptions currently allowed are for farmers who have signed a declaration that the fuel will be used for farm use (CARDLOCK OR BULK DELIVERED). Farm customers will have to provide this declaration to their fuel suppliers prior to the April 1 deadline. Under the current system, cardlock and bulk-delivered farm fuel is eligible for exemptions.
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:
- 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];
- the fuel is delivered to the farmer at a farm or purchased from a cardlock location;
- all or substantially all of the fuel is for use in the course of eligible farming activities; AND
- the farmer provides (and the seller retains) an exemption certificate in this regard.
See Form L402 Fuel Charge Exemption Certificate for Farmers fillable pdf. 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.
Please send in the exemption certificate to firstname.lastname@example.org or fax to (306) 791-0176.
If you have any questions, please feel free to give us a call at (306) 791-9376. We will try to make this transition as smooth as possible for you.