Carbon Tax

NOTICE: Repeal of Provincial Carbon Tax

The Government of Canada has mandated provinces to update carbon tax rates and remove exemptions to align with federally proposed changes for 2023 to 2030.

The Government of Newfoundland and Labrador disagrees with the federal approach, which includes, among others, the removal of carbon tax exemptions on home heating fuel, municipal operations, and intra-provincial aviation.

As a result, the Government of Canada is imposing its federal Fuel Charge (the backstop) on Newfoundland and Labrador; and the province is repealing its legislation and will no longer collect carbon tax as of July 1, 2023.

Provincial Carbon Tax

As of 12:01 a.m. on July 1, 2023:

  • Wholesalers and retailers of carbon products should cease to charge the provincially administered carbon tax.
  • Retailers should also record their inventory of carbon products and may apply for a refund of carbon tax paid on those inventories through the following application – Carbon Retailer Refund Application (July 1, 2023)

Federal Fuel Charge

Effective July 1, 2023, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador will become listed provinces under the federal Greenhouse Gas Pollution Pricing Act. This means that fuel used in these jurisdictions will be subject to the fuel charge under the Act.

For information pertaining to the Government of Canada’s new Fuel Charge, please visit their website at Federal Fuel Charge or call 1-866-330-3304.

 

Provincial Carbon Tax Rates:

Carbon Product Unit Carbon Tax Rates
Effective From  July 1, 2021 to April 30, 2022
Carbon Tax Rates
Effective From  
May 1, 2022 to June 30, 2023
Gasoline $/litre 0.0884 0.1105
Light Fuel Oil (Diesel) $/litre 0.1073 0.1341
Propane $/litre 0.0619 0.0774
Butane $/litre 0.0712 0.0890
Ethane $/litre 0.0408 0.0509
Gas Liquids $/litre 0.0666 0.0832
Heavy Fuel Oil $/litre 0.1275 0.1593
Kerosene $/litre 0.1033 0.1291
Methanol $/litre 0.0439 0.0549
Naphtha $/litre 0.0902 0.1127
Petroleum Coke $/litre 0.1535 0.1919
Pentanes Plus $/litre 0.0712 0.0890
Coke oven gas $/cubic metre 0.0280 0.0350
Marketable natural gas $/cubic metre 0.0783 0.0979
Non-marketable natural gas $/cubic metre 0.1034 0.1293
Still gas $/cubic metre 0.1080 0.1350
Coke $/tonne 127.19 158.99
High heat value coal $/tonne 90.07 112.58
Low heat value coal $/tonne 70.90 88.62
Combustible waste $/tonne 79.89 99.87

See Forms and Applications for a more extensive list.

For more information about corporate income taxes in Newfoundland and Labrador, please contact the Tax Administration Division.

Application Forms to apply for a rebate of gasoline tax under the Revenue Administration Act