Changes to British Columbia Carbon Tax

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On April 1, 2018, BC carbon tax rates will be increasing. This will be the first of four consecutive yearly changes to carbon tax since July 1, 2012.  As a reminder, here is a list of the relevant fuels to UFA that are subject to the carbon tax and new rates for April 1, 2018:

Carbon Tax Rates by Fuel Type – From July 1, 2012

Units for
Tax Rates

July 1, 2012
​April 1, 2018
​April 1, 2019
​April 1, 2020
​April 1, 2021
​​Liquid Fuels

​Light Fuel Oil *

* Light fuel o
il – subcategories of light fuel oil include:

  • Diesel
  • Locomotive fuel
  • Heating oil
  • Industrial oil

The following fuel is exempt from both Carbon Tax & Motor Fuel Tax:

  • Fuel sold and exported outside B.C. under certain conditions
  • Locomotive fuel purchased by an interjurisdictional rail service that is a registered consumer
  • Jet fuel purchased by an international air service that is a registered consumer
  • Fuel purchased on First Nations land by an eligible First Nations individual or band
  • Coloured fuel purchased by a farmer that is delivered to their farm land
  • Fuel purchased by a visiting force or member of the diplomatic and consular corps

The following fuel is exempt from Carbon Tax only:

  • Fuel purchased by an end purchaser, who at the time of sale has entered into a contract with a common carrier to export the fuel from B.C. for their own use outside B.C.
  • Fuel purchased in sealed, pre-packaged containers of four litres or less
  • Fuel purchased by a registered consumer, registered air service or registered marine service (i.e. certain persons that purchase fuel for exempt purposes)
  • There are a limited number of exemptions from carbon tax for fuel that isn't combusted and is used in the following circumstances:
  • As a raw material to manufacture anodes for use in an electrolytic process for smelting aluminum
  • As a raw material in an industrial process to:
    • Produce or upgrade another fuel
    • Manufacture another substance
  • As a reagent to separate out coal or ores of metal in an industrial floatation process
  • In pipeline pigging
  • As antifreeze in a natural gas pipeline
  • In down-hole operations at a well site
  • To remove natural gas liquids or impurities in the processing of natural gas
  • As a refrigerant in a closed system in the processing of natural gas

To find Motor Fuel Tax & Carbon Tax forms, please visit:

For more information:
Toll free in Canada: 1 877 388-4440