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Canada is eliminating consumer carbon tax

21 March 2025

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Tax Alerts, National/Federal Taxation, G...

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Canada

New regulations effectively eliminate the fuel charge imposed under Part 1 of the Greenhouse Gas Pollution Pricing Act (GGPPA) by reducing fuel charge rates to zero, beginning 1 April 2025.In addition, a second set of regulations makes coordinating amendments that relate to the reduction of the fuel charge rates to zero.With the removal of the fuel charge from its carbon pricing system, the Government of Canada will also terminate the Canada carbon rebate.These changes are part of the federal government's effort to refocus pollution pricing on industrial carbon pricing. On 15 March 2025, the Department of Finance published the Regulations Amending...