Removing the consumer carbon price from Canadian law
The Government of Canada is proposing legislative amendments that would permanently repeal the fuel charge framework under Part 1 of the Greenhouse Gas Pollution Pricing Act (GGPPA) in the following four phases to ensure an orderly process for charge payers. These proposed amendments follow the regulations made in March that already ceased the application of the federal fuel charge, effective April 1, 2025.
Phase 1: Charging Provisions Repealed effective April 1, 2025
Effective April 1, 2025, nearly all charging provisions would be retroactively repealed, to reflect in legislation what has already been accomplished by regulations.
The only remaining charging provision would be a special rule for certain railways in respect of past fuel charge consumption that needs to be trued-up. Certain railways pay fuel charge based on estimates and must perform a true-up exercise on their fuel charge obligations in respect of the previous year. This provision would remain until October 1, 2025 to allow for this exercise to take place in respect of fuel charge obligations incurred prior to April 1, 2025.
Phase 2: Rebate Provisions Repealed effective October 1, 2025
Effective October 1, 2025, all rebate provisions would be repealed. Certain uses of fuel after April 1 but prior to October 1 may give right to a rebate (e.g., fuel charge embedded fuel that is exported during this period). This aligns with the treatment of rebates under the regulations made in March 2025.
Rebates for charge paid in error and rebates for reassessment (e.g., to correct accounting mistakes in returns) would continue to be available until the final repeal phase.
Phase 3: Registration Provisions Repealed effective November 1, 2025
Effective November 1, 2025, all registration provisions would be repealed. This would give registrants until October 31, 2025, to file returns to claim rebates arising before October 1, 2025. Beyond this date, registration rules are no longer needed.
Phase 4: Remaining Provisions Repealed effective April 1, 2035
Effective April 1, 2035, the remaining provisions of Part 1 of the GGPPA would be repealed, including definitions, interpretation rules, administrative and procedural rules, etc. This would provide continuity and certainty for final wind down activities, including CRA administrative processes that may continue to rely on existing rules. Subject to the normal limitation periods in the Act, the CRA would also continue to have legal authority to make reassessments, and charge payers to file amended returns, in respect of fuel charge obligations that accrued prior to April 1, 2025.
Related product
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
National Post
21 hours ago
- National Post
CRA resolves contribution room issue for 90% of TFSA holders
The CRA says it has resolved 'most issues' that made Tax-Free Savings Account information, in particular contribution limits, unavailable in My Account. Article content That's the agency's secure online portal where individual taxpayers can access their personal tax information. Article content In an email to National Post on Friday, the CRA wrote: 'As a result, most individuals can now view their TFSA information in My Account.' Article content Article content However, not all TFSA holders will be satisfied yet. The information is only available for about 90 per cent of TFSA holders. Article content Article content 'For the remaining 10%,' writes Charles Drouin with CRA media relations, 'the information remains temporarily unavailable while we work to ensure their contribution room is updated. This precaution is in place to help prevent errors, and efforts continue toward a prompt resolution.' Article content As the agency did previously, it expressed regret over 'any inconvenience this situation may have caused and appreciate the patience and understanding of Canadians as we continue working to fully restore this service.' Article content Individual contribution room is usually readily available by signing into your CRA account. Alternatively, you can usually call the Tax Information Phone Service. However, that hadn't been the case since mid-April, the CRA confirmed with the CBC. Article content Unlike RRSP contribution room, 'TFSA room is not shown on your notice of assessment,' Jason Heath, managing director of Objective Financial Planners in Toronto, tells National Post. Article content Article content 'Even when you try to view your TFSA details like the contribution history, it too is unavailable.' Article content Article content Instead, a warning was posted on the CRA site, Robert Kepes, a tax lawyer with Toronto firm Morris Kepes Winter LLP, told National Post. It's still there.
CBC
a day ago
- CBC
Information about TFSA contribution limits now available, says the CRA
The Canada Revenue Agency (CRA) says it has resolved an issue that prevented people from seeing how much contribution room they had left in their tax-free savings accounts (TFSAs). That information first became unavailable on April 17. CRA spokesperson Charles Drouin told CBC News in an email that the federal agency introduced a new data validation process this year to ensure that tax information submitted to them is accurate. "Upfront validations now advise these filers of errors with their information return submission in real-time and prevent the submission of invalid returns," Drouin wrote. He said the new system would ultimately improve the quality of the data the Canada Revenue Agency receives and allow for any errors to be corrected faster. But he added that "stricter validations and new processes caused delays in receiving and processing the information returns. As a result, there have been delays in processing TFSA annual information returns this year." Each year, Canadians 18 or older get more contribution room in their tax-free savings accounts, which shield investments from taxes. In 2025, for example, the new contribution limit was $7,000. If someone was 18 in 2009 – the year the the savings accounts were introduced – has lived in Canada since then and never contributed to their TFSA, their total contribution limit would be $102,000 as of Jan. 1, 2025. If someone didn't properly track their contributions over the years, though, they could risk going over their limit, which comes with a one per cent interest penalty per month for those funds over the limit. The CRA website notes that posted contribution limits do not take into account any contributions to the TFSA made since Jan. 1, 2025.
Cision Canada
a day ago
- Cision Canada
Government of Canada supports the Francos de Montréal and Festival International de Jazz de Montréal
The two Montréal events receive over $1 million in financial support from CED. MONTRÉAL, /CNW/ - Canada Economic Development for Quebec Regions (CED) Supporting tourism through festivals and events contributes to economic development in Quebec's regions. That is why the Honourable Mélanie Joly, Minister of Industry and Minister responsible for CED, today announced a contribution of $1,012,375 for the Francofolies de Montréal (the Francos) and the Festival International de Jazz de Montréal (FIJM). This CED support will enable these events to promote their activities and attract festivalgoers to their 2025 editions. The Francos and the FIJM are two major events that are iconic of Montréal's summers. CED's funding will make it possible to deploy an international marketing strategy for the 36 th edition of the Francos and the 45 th edition of the FIJM, as well as develop products as part of these two events. The Government of Canada recognizes and supports businesses and organizations that are a source of pride in their communities. Quebec's economic growth relies on organizations with strong roots in the regional economy; they are key assets in building a sustainable, inclusive economy. Quotes "Festivals and cultural events stimulate creation and generate major economic spin-offs in Quebec and across the country. The Government of Canada is proud to support the Francos and the FIJM, two festive gatherings that bring people together and shine a spotlight on the metropolis, while enabling the city to move to homegrown rhythms and international beats. CED's funding attests to our commitment to boost tourism so that visitors from around the world can discover our events and the best tourism experience we have to offer in Montréal and across all Quebec regions." The Honourable Mélanie Joly, Member of Parliament for Ahuntsic-Cartierville, Minister of Industry and Minister responsible for CED "The team at the Francos de Montréal and the Festival International de Jazz de Montréal is proud to once again provide Montréalers with diverse, inclusive, accessible programming, with two thirds of our shows available free of charge. Together, we can experience these larger-than-life moments of communion in the Quartier des spectacles!" Maurin Auxéméry, Director of Programming, Francos de Montréal and FIJM Quick facts The funds have been provided under CED's Quebec Economic Development Program. The aim of this program is to help communities seize economic development and diversification opportunities that are promising for the future. CED is a key federal partner in Quebec's regional economic development. With its 12 regional business offices, CED accompanies businesses, supporting organizations and all regions across Quebec into tomorrow's economy. Associated links Stay connected Follow CED on social media Consult CED's Newsroom SOURCE Canada Economic Development for Quebec Regions
