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.

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).

More information is available online.

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