Carbon Levy Exemptions
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 and Regulations, 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 hold a Marked Fuel Permit as a Pleasure Craft Owner/Operator under the Gasoline Tax Act, please review the information brochure Information for Pleasure Craft Owners/Operators. You may purchase marked fuel without paying the carbon levy at the time of purchase and you must self-assess and pay the carbon levy at the same time as the gasoline tax is paid. The rates of the gasoline tax and the carbon levy payable are the rates on gasoline and diesel that is not marked fuel. For information on the applicable rates please refer to Notice – Combined Carbon Levy and Gasoline Tax Rates and complete the Gasoline Tax and Carbon Levy Self-declaration.
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.
A select number of Levy Exemption Permits will expire on January 31, 2021. Please see Carbon Levy Notice: 115 - Tax Exemption Permits 2021 Renewal.
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.