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.

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.


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
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