The federal fuel charge—part of a federal program for industrial facilities that emit greenhouse gases above a threshold—will be effective in Alberta beginning 1 January 2020.
Affected businesses that have activities in Ontario, Manitoba, Saskatchewan, New Brunswick, Nunavut, and Yukon (the “listed provinces”) were required to register for federal fuel charge purposes, to prepare returns, and to remit the federal fuel charge as of 1 April 2019 (1 July 2019 for the territories of Nunavut and Yukon).
Alberta is scheduled to join these provinces as of 1 January 2020 following repeal of Alberta’s carbon levy that concerned a broad-based levy on fossil fuel used, imported, and delivered in Alberta. Accordingly, those businesses in Alberta that are subject to the federal fuel charge will need to take certain steps to meet the new obligations. Alberta oil and gas producers (among others) will need to determine that they are properly registered and are prepared to meet new monthly reporting requirements.
Read a December 2019 report [PDF 195 KB] prepared by the KPMG member firm in Canada
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.