Carbon Levy Exemptions
This section provides information on situations where the sale of fuel will be exempt from the carbon levy under the Climate Leadership Act.
I hold a “Marked Fuel Permit” under the Gasoline Tax Act. Will I be exempt from the carbon levy?
The marked fuel program for farmers, fishers and aquaculturists under the Gasoline Tax Act will be extended to provide an exemption from carbon pricing on marked gasoline and marked diesel for these industries.
Under the Climate Leadership Act, there will be a "Levy Exemption Permit" issued to fishers, aquaculturists, farmers and custom agricultural contractors. These levy exemption permits will be issued as a combined permit with the "Marked Gasoline / Marked Diesel Oil Permit". The combined permits will be effective April 1, 2019.
If you are the holder of a Levy Exemption Permit under the Climate Leadership Act and Regulations, please familiarize yourself with CLN:105- Notice to Holders of Levy Exemption Permits. This notice will assist you in knowing your responsibilities.
If you are applying for a marked fuel permit after March 15, 2019, please use the new application for your industry.
If you are a farmer, you must complete the Application for Marked Gasoline and/or Marked Diesel Oil Permit, Levy Exemption Permit and Bona Fide Farm Status for Farmers.
If you are a Custom Agricultural Contractor, you must complete an Application for Marked Gasoline and/or Marked Diesel Oil Permit and Levy Exemption Permit for Custom Agricultural Contractors form.
If you are a fisher, you must complete an Application for Marked Gasoline and/or Marked Diesel Oil and Levy Exemption Permit for Fishers form.
If you are an aquaculturist, you must complete an Application for Marked Gasoline and/or Marked Diesel Oil Permit and Levy Exemption Permit for Aquaculturists form.
If you have a Marked Fuel Permit for another industry under the Gasoline Tax Act you will be protected from a reduction in the value of the current tax break on these fuels. The carbon levy rates on Marked Gasoline and Marked Diesel are lower than the carbon levy rates on gasoline and diesel.
Will there be any other exemptions?
Under Section 87 of the Indian Act, First Nation individuals living on a reserve will be exempt from carbon pricing on all fuels delivered to the reserve.
Exemptions will apply to interjurisdictional marine carriers, interjurisdictional air carriers and large emitters with a valid covered facility certificate issued by the Government of Canada.