The Federal Fuel Charge (or ‘FFC’, commonly called the Carbon Tax) is mandated under the Greenhouse Gas Pollution Pricing Act and goes into effect in Nova Scotia on July 1, 2023. You will notice this additional federal fuel charge on your invoices as “Federal Fuel”.
The Federal Fuel Charge will vary by the petroleum product you purchase.
The following rates will be effective on July 1st, 2023:
| Type of Fuel | Federal Fuel Charge |
|---|---|
| Gasoline | $0.1431 per litre |
| Light fuel oil (Diesel/clear and dyed) (Furnace oil/Therma clean) | $0.1738 per litre |
| Kerosene | $0.1678 per litre |
| Propane | $0.1006 per litre |
An exemption is available for farmers, fishers, registered distributors, registered road carriers and a partial exemption for greenhouse operators. There is a relief for the Federal Fuel Charge paid by individuals.
Farmers
Registered road carriers
Fishers
Registered distributors
Individuals
Greenhouse operators
An exemption is available for farmers, fishers, registered distributors, registered road carriers and a partial exemption for greenhouse operators. There is a relief for the Federal Fuel Charge paid by individuals.
Farmers
Registered road carriers
Individuals
Fishers
Registered distributors
Greenhouse operators
Certain customers are exempt from paying the Federal Fuel Charge. The following table outlines who qualify for the exemption:
| Category of Customer | Federal Exemption Certificate | Eligible customers can download their exemption forms here |
| Farmer for gasoline, light fuel oil | L402 Fuel Charge Exemption Certificate for Farmers | Farmers – https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/l402.html |
| Fisher for gasoline, light fuel oil | L403 Fuel Charge Exemption Certificate for Fishers | Fishers – https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/l403.html |
| There are additional exemptions under the FFC which do not affect residential and business users, including registered distributors; air, marine, rail and other registered users; as well as greenhouse operators that use propane. | ||
Certain customers are exempt from paying the Federal Fuel Charge. The following table outlines who qualify for the exemption:
Category of Customer Farmer for gasoline, light fuel oil Federal Exemption Certificate L402 Fuel Charge Exemption Certificate for Farmers Eligible customers can download their exemption forms here Farmers – https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/l402.html |
Category of Customer Fisher for gasoline, light fuel oil Federal Exemption Certificate L403 Fuel Charge Exemption Certificate for Fishers Eligible customers can download their exemption forms here Fishers – https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/l403.html |
| There are additional exemptions under the FFC which do not affect residential and business users, including registered distributors; air, marine, rail and other registered users; as well as greenhouse operators that use propane. |
There is a relief for the Federal Fuel Charge paid by individuals. The Climate Action Incentive Payment (CAIP) is a tax-free amount paid to help individuals, and families offset the cost of federal pollution pricing. It consists of a basic amount and a supplement for residents of small and rural communities. Residents of Nova Scotia will receive three quarterly payments (July 2023, October 2023, and January 2024) in the first year and four payments in the years after that. These quarterly tax-free payments will be made through a Government of Canada benefit system.
You are eligible for this rebate payment if you are a resident of Canada for income tax purposes in the month before and at the beginning of the month in which the CRA makes a payment. To be eligible, you must also be a resident of an eligible CAIP province on the first day of the payment month.
You do not need to apply to receive the payment for the CAIP. The Canada Revenue Agency (CRA) will determine your eligibility when you file your income tax and benefit return and will send you payments if you are entitled to them. The following table outlines the currently proposed payments:
| Category of Customer | Quarterly Payment Amount paid by the Government of Canada |
| First Adult | $124 per quarter |
| Second Adult | $62 per quarter |
| Each Child | $31 per quarter |
| Family of 4 | $248 per quarter |
If you are exempt, you must provide a copy of the exemption certificate in advance of any delivery occurring on or after July 1, 2023. Please include your account number when submitting the certificate.
Exemption Certificates need to be received and on customer files before we can sell fuel exempt from the FFC. Federal rules do not permit issuing refunds of the Federal Fuel Charge if a certificate is received after the delivery.
In the rare event that you qualify as an exempt customer, it is important that you provide the Exemption Certificate to us as soon as possible. The certificate can be sent to info@scotiafuels.com or P.O. Box 8206 Halifax, Nova Scotia, B3K 5L9.
For more information on the Climate Action Incentive Payment, please refer to the following website:
https://www.canada.ca/en/revenue-agency/services/child-family-benefits/cai-payment.html#toc1, or contact the Canada Revenue Agency.
For more information on the Federal Fuel charge, please refer to the following website: https://www.canada.ca/en/revenue-agency/services/tax/excise-taxes-duties-levies/fuel-charge.html, or contact the Canada Revenue Agency at 1-866-330-3304.
If you are receiving a mailed copy of this notification, please consider providing your local branch with an email address that can be used for future correspondence associated with the Federal Fuel Charge and other matters.