Carbon Levy Roles and Responsibilities

This section provides information for wholesalers, retail vendors and consumers on roles and responsibilities under the PEI Climate Leadership Act and Regulations.

The Department of Finance will release instructional guides, forms, and notices to support stakeholders in meeting their obligations for carbon pricing (levy) under new legislation that will come into effect April 1, 2019.

For wholesalers and retailers

I hold a license under IRAC to wholesale fuel, what must I do due under the carbon pricing plan?

If you are a wholesaler of fuel, you will have to register as an agent to collect carbon levy. Please read the reference guide “Important Information for Agents” and submit the completed the “Registration Application – Agent for Carbon Levy” to Taxation and Property Records Division, Finance.  

I sell industrial fuels. What must I do under the carbon pricing plan?

If you sell industrial fuels, you will have to register as an agent to collect carbon levy. Please read the reference guide Important Information for Agents and submit the completed the Registration Application – Agent for Carbon Levy to Taxation and Property Records Division, Finance.  

I sell factory-sealed containers of fuel. What must I do under the carbon pricing plan?

If you sell factory sealed containers of fuel, exceeding 10 litres, you will have to register as an agent to collect carbon levy. Please read the reference guide Important Information for Agents and submit the completed the Registration Application – Agent for Carbon Levy to Taxation and Property Records Division, Finance.  

I sell combustible waste for fuel. What must I  do under the carbon pricing plan?

If you sell combustible waste, for example, tires or asphalt shingles for fuel, you will have to register as an agent to collect carbon levy. Please read the reference guide Important Information for Agents and submit the completed the Registration Application – Agent for Carbon Levy to Taxation and Property Records Division, Finance.  

I retail fuel to purchasers that I buy from a wholesaler. I pay the gas tax to the wholesaler. What must I do under the carbon pricing plan?

If you are a retailer of fuel, you will be paying the carbon levy to your wholesaler just as you pay the gasoline tax.  However, when the carbon levy comes into effect on April 1, 2019, you must self declare on your inventory on hand, as of March 31, 2019 and pay the carbon levy due on that inventory.  If you retail aviation fuel, please complete the Aviation Retailers' Carbon Levy Self-Declaration Form.  If you retail gasoline or diesel please complete the Gasoline and/or Diesel Retailers' Carbon Levy Self-Declaration Form.

For consumers and others

As a consumer, how does the carbon pricing plan affect me?

As a consumer, you will be paying a net increase of 1 cent per litre on gasoline and diesel purchased at the pump. For more information, please refer to Notice- Combined Carbon Levy and Gasoline Tax Rates

I buy combustible waste for fuel. If I am not been charged the carbon levy on these fuels, what should I do?

After April 1, 2019, as a consumer who is using fuel on which the carbon levy has not been paid, you must self declare on the fuel used and pay the carbon levy on that fuel.  A self declaration form is being made available.

I am a trucker and a member of the International Fuel Tax Agreement (IFTA). How does the carbon pricing plan affect me?

The PEI carbon levy will be included with the gasoline and diesel tax rate on your IFTA quarterly return effective April 1, 2019.  

The IFTA quarterly return already includes the carbon levy/tax for Alberta and British Columbia. Newfoundland and Labrador has indicated intent to follow this practice when carbon tax is  implemented on January 1, 2019. Nova Scotia and Quebec have a “cap and trade” carbon pricing plan so there will be no carbon tax in these provinces.  

If you travel into New Brunswick, Ontario, Manitoba, or Saskatchewan, contact the Federal Government before April 1, 2019, to find out your responsibilities under Greenhouse Gas Pollution Pricing Act

How do I know if I am a large emitter?

If you are an industrial facility that emits 50 kilotonnes (kt) or more of carbon dioxide equivalent (CO2e) per year, you may be a large emitter. Contact the Federal Government before January 1, 2019, to find out your responsibilities under the Greenhouse Gas Pollution Pricing Act.

Notices to Agents

Registration

The Climate Leadership Act and Regulations come into effect in Prince Edward Island on April 1, 2019. If you sell fuel, you may be required to register as an agent to collect the carbon levy under this act. Refer to Notice to Agents - Carbon Levy for more information. 

Gasoline Tax/Carbon Levy Combined Return

The Climate Leadership Act and Regulations come into effect in Prince Edward Island on April 1, 2019. To facilitate the collection, reporting and remittance of the carbon levy in conjunction with the collection, reporting and remittance of the gasoline tax, a Gasoline Tax/Carbon Levy Combined Return Form has been developed. Refer to Notice to Agents- Gasoline Tax/Carbon Levy Combined Return for more information. 

Instructions to complete the form can be found here

Notices to Retailers

Gasoline and Diesel Inventory On-Hand

The Climate Leadership Act and Regulations come into effect in Prince Edward Island on April 1, 2019. It is the responsibility of retailers to calculate and remit the carbon levy owing on gasoline and diesel inventory on-hand at the time of implementation. For more information, please refer to Notice to Retailers- Inventory On-Hand. A self-declaration form can be found here: Gasoline and/or Diesel Retailers' Carbon Levy Self-Declaration Form

Carbon Levy on Aviation Fuel

The Climate Leadership Act and Regulations come into effect in Prince Edward Island on April 1, 2019. It is the responsibility of retailers of aviation gasoline and turbo fuel/jet fuel to calculate and remit the carbon levy owing on aviation gasoline and fuel on-hand at the time of implementation. For more information, please refer to Notice to Retailers- Carbon Levy on Aviation Fuel. A self-declaration form can be found here: Aviation Retailers' Carbon Levy Self-Declaration Form.  

Notices to Wholesalers

Our department is taking steps to accommodate the transition in the department's policy to allow for the exemption from carbon levy by holders of valid marked fuel permits. For more information, refer to Notice to Fuel Vendors Selling Marked Gasoline and Marked Diesel.

The department has also made updates to its numbering system for exemption permits effective April 1, 2019. For more information, please refer to Notice to Fuel Vendors- Numbering System- Exemption Permits

Notice to IFTA Carriers

The Climate Leadership Act and Regulations require that the PEI carbon levy payable by an interjurisdictional road carrier be administered, enforced, and adjusted under provisions of IFTA as provided for by the Gasoline Tax Act. For more information, refer to Notice to IFTA Carriers.

Contact Us

In-house expertise is available to answer your questions.

Phone: 902-368-4070
Email:carbonpricinginquiries@gov.pe.ca

Disclaimer: This page is prepared for information purposes only, and should not be considered a substitute for the applicable statutes. Should there be any conflict between the contents of this page and the statutes, the statutes shall prevail.
Published date: 
November 8, 2018