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Motor fuel taxes in Canada#Tax revenues

{{Short description|Compulsory levies on car and truck energy sources in the North American country}}

In Canada, motor vehicles are primarily powered by gasoline or diesel fuel. Other energy sources include ethanol, biodiesel, propane, compressed natural gas (CNG), electric batteries charged from an external source, and hydrogen. Canada, like most countries, has excise taxes and other taxes on gasoline, diesel, and other liquid and gas motor fuels (collectively called fuel taxes), and also taxes electricity at various administrative levels. Most provinces and territories in Canada also have taxes on these motor fuels, and some metropolitan areas such as Montreal, Greater Vancouver, and Victoria impose additional taxes.

Additionally, Canada's federal (national) government collects value-added tax (GST) across the country, and some provincial governments also collect a provincial sales tax (PST), which may be combined with the GST into a single harmonized sales tax (HST). HST, GST, or GST + PST where applicable, are calculated on the retail price including the excise taxes.{{cite news | title=Oil and Gas Prices, Taxes and Consumers | date=July 2006 | publisher=Department of Finance (Canada) | url =http://www.fin.gc.ca/toce/2006/gas_tax-e.html | pages =6b) Application of the GST | access-date = 2007-12-13 |archive-url = https://web.archive.org/web/20071120021637/http://www.fin.gc.ca/toce/2006/gas_tax-e.html |archive-date = 2007-11-20}}

Fuel tax rates across Canada

= Gasoline =

class="wikitable sortable" style="text-align:center"

|+Gasoline Fuel Taxes by Province/Territory (cents per litre) (Effective April 1, 2025)

Government

! Federal Excise Tax (CAD¢/L) {{Cite web |last=Agency |first=Canada Revenue |date=2017-06-22 |title=Current Rates of Excise Taxes |url=https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/currate/current-rates-excise-taxes.html |access-date=2022-03-09 |website=www.canada.ca}}

! Prov/Terr Excise Tax (CAD¢/L)

!Fed
Carbon tax (CAD¢/L) {{Cite web |last=Agency |first=Canada Revenue |date=2022-09-08 |title=Fuel Charge Rates |url=https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/fcrates/fuel-charge-rates.html |access-date=2023-12-22 |website=www.canada.ca}}

! Local Fuel Levy (CAD¢/L)

! Total Pre-Sales tax (CAD¢/L)

! HST, GST, or GST + PST/QST
(%)

! Minimum tax incl. sales taxes
(CAD¢/L)

! Min. tax
(CAD¢/US gal)

Canada (average)

| 10 || 10.33

| 2.71|| || 23.16 || 9.68% || 25.41 || 96.2

Newfoundland and Labrador

| 10 || 14.50 {{Cite web |title=Gasoline Tax |url=https://www.gov.nl.ca/fin/tax-programs-incentives/business/gasolinetax/ |access-date=2022-03-09 |website=Finance |date=22 July 2019 |language=en-CA}}

| 0|| || 24.50 || 15% || 28.18 || 106.7

Prince Edward Island

| 10 || 8.47 {{Cite web |last=Toolkit |first=Web Experience |date=2017-03-14 |title=Gasoline Tax Rates |url=https://www.princeedwardisland.ca/en/information/finance/gasoline-tax-rates |access-date=2022-03-09 |website=www.princeedwardisland.ca}}

| 0|| || 18.47 || 15% || 21.24 || 80.4

Nova Scotia

| 10 || 15.50 {{Cite web |title=Nova Scotia Department of Finance - Tobacco & Fuel |url=https://www.novascotia.ca/finance/en/home/taxation/tax101/tobaccofuel.aspx.html |access-date=2022-03-09 |website=www.novascotia.ca}}

| 0|| || 25.50 || 15% || 29.33 || 111.0

New Brunswick

| 10 || 10.87 {{Cite web |last=Government of New Brunswick |first=Canada |date=2013-01-30 |title=Gasoline, Motive Fuel and Carbon Emitting Product Tax A basic overview of the taxation of gasoline, motive fuel and carbon emitting products |url=https://www2.gnb.ca/content/gnb/en/departments/finance/taxes/gasoline_motive_fueltax.html |access-date=2022-03-09 |website=www2.gnb.ca |language=en}}

|0

| || 20.87 || 15% || 24.00 || 90.9

QuebecExcluding Montreal.

| 10 || 19.20 {{Cite web |title=Fuel Tax Rates |url=https://www.revenuquebec.ca/en/businesses/consumption-taxes/fuel-tax/fuel-tax-rates/ |access-date=2022-03-09 |website=Revenu Québec |language=en}}

| 0|| || 29.20 || 14.975% || 33.57 || 127.1

Montréal, QC

|10

|19.20

|

|3 {{Cite web |date=June 2017 |title=Table of Fuel Tax Rates in Québec, by Region |url=https://www.revenuquebec.ca/documents/en/formulaires/ca/ca-1-v%282017-06%29.pdf |access-date=March 9, 2022 |website=Revenue Quebec}}

|32.20

|14.975%

|37.02

|140.1

Ontario

| 10 || 9.0 {{Cite web |title=Gasoline Tax |url=https://www.fin.gov.on.ca/en/tax/gt/index.html |access-date=2023-01-01 |website=www.fin.gov.on.ca}}

| 0

| || 19.00 || 13% || 21.47 || 81.3

Manitoba

| 10 || 0{{Cite web |title=Mixed feelings as Manitoba’s gas tax holiday begins - Winnipeg {{!}} Globalnews.ca |url=https://globalnews.ca/news/10200016/manitoba-gas-tax-holiday/ |access-date=2024-01-04 |website=CJOB |language=en-US}}

| 0|| || 10.00 || 12%|| 11.20 || 42.4

Saskatchewan

| 10 || 15 {{Cite web |date=October 1, 2021 |title=Information Bulletin FT-1 The Fuel Tax and Road Use Charge Act |url=https://www.sets.saskatchewan.ca/rptp/wcm/connect/d49ebcea-359d-40b1-9916-52a7cd90779c/FT.001+Fuel+Tax+-+General+Information.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-d49ebcea-359d-40b1-9916-52a7cd90779c-nzLtZ4C |access-date=March 9, 2022 |website=SETS Saskatchewan eTax Services}}

| 0|| || 25.00 || 5%|| 26.25 || 99.4

Alberta

| 10 || 13 {{cite web |title=Fuel tax rates |url=https://www.alberta.ca/about-tax-levy-rates-prescribed-interest-rates#fuel |website=Alberta |publisher=Government of Alberta |access-date=3 April 2024}}

| 0|| || 23.00 || 5% || 24.15 || 91.42

British ColumbiaExcluding Greater Vancouver and Greater Victoria

| 10 || 7.75 {{Cite web |date=April 1, 2023 |title=Bulletin MFT-CT 005 Tax Rates on Fuels |url=https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/mft-ct-005-tax-rates-fuels.pdf |access-date=December 21, 2023 |website=gov.bc.ca The official website of the Government of British Columbia.}}

|0

| 6.75 || 24.50|| 5% || 25.73 || 97.40

Vancouver, BC

|10

|1.75

|0

|6.75 + 18.5

|37.00

|5%

|38.85

|147.06

Victoria, BC

|10

|7.75

|0

|6.75 + 5.5

|30.00

|5%

|31.50

|119.24

Yukon

| 10 || 6.20 {{Cite web |date=2019-06-11 |title=Find current fuel tax rates in Yukon |url=https://yukon.ca/fuel-tax-rates |access-date=2022-03-10 |website=yukon.ca}}

| 0|| || 16.20 || 5% || 17.01 || 64.4

Northwest Territories

| 10 || 10.70 {{Cite web |title=Fuel tax rates english |url=https://www.fin.gov.nt.ca/sites/fin/files/resources/fuel_tax_rates_english.pdf |access-date=March 9, 2022 |website=Government of Northwest Territories - Finance}}

|17.61|| || 38.31 || 5% || 40.23 || 152.3

Nunavut

| 10 || 6.40 {{Cite web |date=January 1, 2022 |title=Nunavet Tax Rates 2022 |url=https://www.gov.nu.ca/sites/default/files/nunavut_tax_rate_sheet_2022-eng.pdf |access-date=March 9, 2022 |website=Government of Nunavet}}

| 0|| || 16.40 || 5% || 17.22 || 65.2

= Diesel =

class="wikitable sortable" style="text-align:center"

|+Diesel Fuel Taxes by Province/Territory (Effective April 1, 2024 )

Government

! Federal Excise Tax (CAD¢/L)

! Prov/Terr Excise Tax (CAD¢/L)

!Fed
Carbon tax (CAD¢/L)

!Prov
Carbon tax (CAD¢/L)

! Local Fuel Levy (CAD¢/L)

! Total Pre-Sales tax (CAD¢/L)

! HST, GST, or GST + PST/QST
(%)

! Minimum tax incl. sales taxes
(CAD¢/L)

! Min. tax
(CAD$/US gal)

Canada (average)

| 4 || 11.34

| colspan="2" | 6.12

| || 22.26 || 9.3% || 24.32 || 0.921

Newfoundland and Labrador

| 4 || 16.50

|0

| || || 20.5 || 15% || 23.58 || 0.892

Prince Edward Island

| 4 || 14.15

|0

| || || 18.15 || 14% || 20.69 || 0.783

Nova Scotia

| 4 || 15.40

|0

| || || 19.4 || 15% || 22.31 || 0.845

New Brunswick

| 4 || 15.45

|0

|

| || 19.45 || 15% || 22.37 || 0.847

Quebec

| 4 || 20.20

|

| || || 24.2 || 14.98% || 27.82 || 1.053

Ontario

| 4 || 14.30

| 0

|

| || 18.3 || 13% || 20.68 || 0.783

Manitoba

| 4 || 14 {{Cite web |title=Taxation Division - Finance |url=https://www.gov.mb.ca/finance/taxation/taxes/gasoline.html |access-date=2022-03-09 |website=Province of Manitoba - Finance |language=en}}

| 0

| || || 18 || 12%|| 20.16 || 0.763

Saskatchewan

| 4 || 15

| 0

| || || 19 || 5%|| 19.95 || 0.755

Alberta

| 4 || 13

| 0

| || || 17 || 5% || 17.85 || 0.676

British Columbia

| 4 || 8.25

|0

|0

| 6.75 || 19 || 5% || 19.95 || 0.755

Vancouver, BC

|4

|2.25

|0

|0

|6.75 + 18.5

|31.5

|5%

|33.08

|1.252

Victoria, BC

|4

|8.25

|0

|0

|6.75 + 5.5

|21.45

|5%

|22.52

|0.853

Yukon

| 4 || 7.20

| 0

| || || 11.2 || 5% || 11.76 || 0.445

Northwest Territories

| 4 || 9.10

|

| 13.7|| || 26.8 || 5% || 28.14 || 1.065

Nunavut

| 4 || 9.10

| 21.39

| || || 34.49 || 5% || 36.21 || 1.371

= Notes =

{{reflist|group=nb}}

Tax collection and rate changes

In March 2022, the Alberta government announced it would suspend the collection of the fuel tax starting April 1, as a way to fight the rising cost of fuel.{{Cite web |last=French |first=Janet |date=March 7, 2022 |title=Alberta to pause collection of provincial fuel tax to help consumers shocked by high prices |url=https://www.cbc.ca/news/canada/edmonton/alberta-pausing-provincial-fuel-tax-collection-1.6375882 |access-date=March 24, 2022 |website=CBC news}}

In December 2023, the Alberta government announced that with lower oil prices, the fuel tax would be phased back in after Dec. 31, 2023.{{Cite news |date=23 November 2023 |title=Pumped up: Alberta gas tax slated to return in January |url=https://www.cbc.ca/news/canada/calgary/gas-tax-returns-2024-danielle-smith-1.7037848 |access-date=21 December 2023 |publication-place=Calgary |agency=CBC News}}

On March 15, 2025 the Government of Canada enabled regulations that set the federal fuel charge to 0. The effective date for the change was April 1, 2025. The affected provinces and territories were Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Nunavut, Ontario, Prince Edward Island, Saskatchewan, and Yukon.{{Cite web |last=Agency |first=Canada Revenue |date=2022-09-08 |title=Fuel charge rates |url=https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/fcrates/fuel-charge-rates.html |access-date=2025-04-02 |website=www.canada.ca}} After this announcement, Premier of British Columbia David Eby announced the elimination of the BC carbon tax on April 1, 2025.{{Cite web |date=2025-04-01 |title=B.C. eliminates carbon tax |url=https://news.gov.bc.ca/releases/2025FIN0014-000280on-tax-after-carney-kills-federal-version-10378409 |archive-url=https://web.archive.org/web/20250401033139/https://news.gov.bc.ca/releases/2025FIN0014-000280 |archive-date=2025-04-01 |access-date=2025-03-31 |website=BC Government News |language=en}}

Tax revenues

{{see also|Sales taxes in Canada}}

The Government of Canada collects about $5 billion per year in excise taxes on gasoline, diesel, and aviation fuel{{cite web | title = ARCHIVED - BACKGROUNDER – OIL AND GAS PRICES, TAXES AND CONSUMERS | publisher=Department of Finance Canada |date=October 2005 | url=http://www.fin.gc.ca/toc/2005/gas_tax-eng.asp | access-date = 7 February 2013 }} as well as approximately $1.6 billion per year from GST revenues on gasoline and diesel (net of input tax credits). The Canada Revenue Agency, a part of the government, collects these taxes.

Collectively, the provincial governments collect approximately $8 billion per year from excise taxes on gasoline and diesel.

The federal taxes go into general coffers and help to fund a range of programs: $2 billion of the approximately $5 billion collected from federal excise taxes goes into the now permanent annual Gas Tax Fund for municipal infrastructure. Provincial tax revenues usually go to fund road repair and construction, and additionally in some provinces a portion of revenues (for example, 2 cents/litre in Ontario) is also distributed directly to municipalities.{{cite news | author=Ministry of Transportation | title=Backgrounder - How municipalities benefit from provincial gas tax funding | publisher=Government of Ontario, Canada | url=http://www.mto.gov.on.ca/english/news/provincial/2004/102204a.shtml | work=Canada NewsWire | access-date=2007-09-07 | archive-url=https://web.archive.org/web/20140314235514/http://www.mto.gov.on.ca/english/news/provincial/2004/102204a.shtml | archive-date=2014-03-14 | url-status=dead }}

Criticism

In Quebec, an Ipsos poll released in 2022 found that 73% of the population thought that the taxes levied on fuel were too high.{{Cite web |last=QMI |first=Agence |title=Les Québécois préfèrent l'idée d'un pétrole "Made in Quebec" |url=https://www.journaldemontreal.com/2022/03/17/les-quebecois-preferent-lidee-dun-petrole-made-in-quebec |access-date=2022-03-24 |website=Le Journal de Montréal|date=17 March 2022 }}

See also

References

{{reflist}}

External links

  • [https://web.archive.org/web/20071221030022/http://www.fin.gc.ca/toce/2006/gas_tax-e.html Oil and Gas Prices, Taxes and Consumers (Canada)]
  • [http://www.cbc.ca/news/multimedia/gas-prices-across-canada-1.2917994 CBC Gas Price Tracker]

Canada

Category:Taxation in Canada

Category:Energy in Canada

Category:Transport in Canada

Category:Energy policy of Canada

Category:Canadian economic policy

Category:Sales taxes in Canada

Category:Fossil fuels in Canada