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 RatesJuly 1, 2012April 1, 2018April 1, 2019April 1, 2020April 1, 2021
Liquid Fuels
Gasoline¢/litre6.677.788.8910.0111.12
Light Fuel Oil *¢/litre7.678.9510.2311.5112.78
Kerosene¢/litre7.839.1410.4411.7513.05
Methanol¢/litre3.273.824.364.915.45
Propane¢/litre4.625.396.166.937.70
* Light fuel oil – 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: https://www2.gov.bc.ca/gov/content/taxes/sales-taxes/motor-fuel-carbon-tax/forms
For more information: Visit: https://www2.gov.bc.ca/gov/content/taxes/sales-taxes Toll free in Canada: 1 877 388-4440 Email: FuelTax@gov.ba.ca
