Federal Fuel Charge (Carbon Tax) Effective April 1st

The new Federal Fuel Charge (Carbon Tax) will be effective April 1, 2019 in Ontario. The Fuel Charge rates are as follows:

April 1, 2019 April 1, 2020 April 1, 2021 April 1, 2022
Gasoline 0.0442 0.0663 0.0884 0.1105
Diesel 0.0537 0.0805 0.1073 0.1341

Ontario farmers are eligible to receive an exemption from the fuel charge for fuels (gasoline and light fuel oil) used in tractors, trucks or other farm machinery. The following is the eligibility requirements:

eligible farming activity means

  • (a) the operation of eligible farming machinery on a farm for the purposes of farming;
  • (b) the operation of eligible farming machinery for the purposes of going from a location at a farm to another location at a farm; or
  • (c) a prescribed activity. (activité agricole admissible)

eligible farming machinery means property that is primarily used for the purposes of farming and that is

  • (a) a farm truck or a tractor;
  • (b) a vehicle not licensed to be operated on a public road;
  • (c) an industrial machine or a stationary or portable engine; or
  • (d) prescribed property;

but does not include

  • (e) a vehicle that is an automobile as defined in subsection 248(1) of the Income Tax Act;
  • (f) property that is used for the purpose of providing heating or cooling to a building or similar structure; or
  • (g) prescribed property. (machinerie agricole admissible)
Fuel Charge Exemption Form

We ask that you fill the form out in full and submit to us as soon as possible (please ensure that it is dated, signed and that you have included your CRA Business# and these are a MUST.). If we do not receive your form we will not be able to issue the exemption for the carbon tax. Should you need clarification on your eligibility please visit Greenhouse Gas Pollution Pricing Act . You can also visit the Ontario Federation of Agriculture website