MILLAR KREKLEWETZ LLP is a boutique Canadian law firm with lawyers who have significant expertise in assisting businesses with respect to the taxation of gasoline in Canada .
The following is a short introduction to our services in this area.
Gasoline sold in Canada is subject to tax at both the federal and provincial levels.
Gasoline Tax Federal
The federal government taxes gasoline as an excise tax under the Excise Tax Act (ETA) and under the general goods and services tax (GST) regime.
Currently, different rates of federal excise tax apply to the following: leaded gasoline; leaved aviation gasoline; unleaded gasoline; unleaded aviation gasoline; diesel fuel; and aviation fuel. Unleaded gasoline is taxed at a rate of 10 cents per litre, and diesel fuel is taxed at 11 cents per litre.
The goods and services tax (GST) is 6 per cent of the final price paid for fuel, including federal and provincial excise taxes levied at the producer/wholesaler level, and is embedded in the retail price. The GST does not apply to provincial sales taxes levied at the pump as a percentage of the final price. Purchasers of gasoline engaged in a commercial activity can claim full refunds of GST paid on any business-related expense, including gasoline and other kinds of fuel, known as input tax credits (ITCs).
Gasoline Tax Provincial
The provincial governments also tax gasoline as an excise tax under their respective statutes with respect to the sale of gasoline. Further, in the Atlantic provinces (i.e., New Brunskwick , Newfoundland , and Nova Scotia ), the provincial portion of the harmonized sales tax (HST) is levied on the final price of fuel at the pump (excluding GST). In Quebec , the Quebec Sales Tax is levied on the final price of fuel at the pump (including GST).
Tax rates on gasoline range from 6.2 cents per litre in the Yukon to around 21 cents per litre in Prince Edward Island .
Millar Kreklewetz LLP advises clients on all aspects relating to the taxation of gasoline, and any persons with any issues inherent in their files are encouraged to contact us for more infomation.