Canada: Expansion of federal fuel charge to Newfoundland and Labrador, Nova Scotia, and Prince Edward Island
Subject to the federal carbon pollution pricing backstop as of 1 July 2023
Newfoundland and Labrador, Nova Scotia, and Prince Edward Island
The federal fuel charge is scheduled to take effect in Newfoundland and Labrador, Nova Scotia, and Prince Edward Island as of 1 July 2023.
The federal government announced that these provinces’ fuel charge systems will not meet the upcoming revised federal benchmarks for carbon pricing and will therefore be subject to the federal carbon pollution pricing backstop as of this date. As a result, fuel producers, fuel wholesalers, emitters and fuel distributors, as well as air, marine, rail and road carriers, and certain users, among others, will have to determine if they are required or permitted to register and prepare to meet the registration, reporting and compliance obligations that will soon apply under the federal rules.
As a result of the change, individual residents of these provinces will also be eligible to receive quarterly federal climate action incentive payments starting in July 2023 if they file their income tax returns.
Read a December 2022 report prepared by the KPMG member firm in Canada
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