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The federal carbon tax: Here’s what you need to know!

The federal government imposed a carbon tax on Saskatchewan, Manitoba, Ontario, and New Brunswick as April 1, 2019. And come January 1st, 2020, Alberta will also find itself on that list of provinces having to comply with the federal plan. The plan includes a confusing slew of rules on registrations and exemptions. We can help you figure out the maze of rules. If you have business activities in these provinces, you may have to register. 

A new registry has been created by the government to monitor the distribution, importation, and use of fuel in provinces subject to this new tax. This registry will also be used to administer tax relief to sectors exempted from this new tax, such as agriculture. 

Looking to offset these additional costs?

The federal government has announced that small businesses in Ontario, New Brunswick, Manitoba, and Saskatchewan can now apply for funding for energy-saving projects. Eventually, Alberta businesses will be able to apply for funding at a later date to be announced by the government. Businesses will be eligible to receive up to 25% of the cost of projects that will make their businesses more productive and competitive as they reduce energy use, save money, and cut greenhouse gas pollution. Projects such as building retrofits, improved industrial processes, fuel switching, and the production of renewable energy will qualify for funding. Learn more here. 

 

You can reach the CRA at fuelcharge@cra-arc.gc.ca for fuel charge questions. If you still have outstanding questions, please call your CFIB Business Counsellor.

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Topics in this Article: Tax Compliance