Carriers who travel between provinces will need to register with the Canada Revenue Agency by April 1 as part of the federal carbon pricing tax.
Last fall, the government announced the roll out schedule for the carbon tax. Part 1 places Saskatchewan, Manitoba, Ontario, and New Brunswick on the April 1 deadline followed by Nunavut and Yukon on July 1.
On Nov. 20, 2018, the CRA hosted a national webinar on the federal fuel charge registration system for freight companies. In December 2018, a number of concerns were brought to the Canadian Transportation Agency including the potential for double taxation, ensuring a level playing field with international competition, and the need for the federal government to prepare guidance materials and to conduct proper education/outreach initiatives in the trucking sector.
The Greenhouse Gas Pollution Pricing Act has two parts: Part 1 is administered by the CRA where in it applies a charge to 21 types of fuel and combustible waste; Part 2 is administered by Environment and Climate Change Canada and introduces an output-based pricing system (OBPS) for industrial facilities.
Gas carbon tax will increase yearly from $0.0442 per litre from April 1, 2019 to $0.1105 per litre by April 2022.
Industry reacts
In response to the carbon tax, the Canadian Trucking Alliance is calling on Transport Minister Marc Garneau to re-invest the money gained through the tax to purchasing “green, carbon-reducing equipment and technology” for fleets.
From the beginning of the carbon tax discussions, CTA has consistently stated that any mechanism used to collect revenue under the carbon pricing system must make sense for the industry,” said CTA president Stephen Laskowski.
“If the revenues generated from the carbon tax by industry are not used to support faster market penetration of carbon reducing technologies for diesel trucks, then it’s quite difficult for carriers to comprehend what purpose carbon taxation has on our sector.”

CTA wants to see money collected by the tax to be used for initiatives such as fuel efficient tractors and trailers, aerodynamic devices such as side skirts, wide-based single tires, boat-tails, and a other emission reduction technologies and devices. The CTA uses the examples of the former Green Commercial Vehicle Program in Ontario and the current Ecocamionage program in Quebec as models.
The trucking industry remains the only freight mode to use equipment regulated for carbon reduction by Environment Canada. The regulation, by its design, recognizes that our sector has very few impactful alternatives to diesel engines,” said Laskowski. “Consequently, if the purpose of the carbon tax regulation is to spur changes in operational behavior then there is no really policy purpose or the carbon tax without revenue to support purchases of carbon reducing equipment.”

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