Scopelitis, Garvin, Light, Hanson & Feary, P.C.


News & Analysis

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Transportation Brief: Canada’s New Federal Fuel Tax

by Ronald J. Morelock

March 28, 2019

The Canada Revenue Agency (CRA) now administers a federal fuel tax that is part of the Canadian government’s plan to reduce Greenhouse Gas (GHG) emissions in Canada.  Those engaged in commercial transportation of goods over the roadways between two or more provinces or between a U.S. location to a Canadian location and operating commercial vehicles with 3 or more axles regardless of weight, or 2 axles with a GVW or CGVW of more than 26,000 pounds (11,797 kg) are required to (1) register as a road carrier with the CRA and (2) pay a fuel charge in specified provinces.  The CRA registration deadline for motor carriers operating in Manitoba, New Brunswick, Ontario and Saskatchewan was April 1, 2019 and is July 1, 2019 in Nunavut and Yukon.  The fuel charge will be assessed at the pump.

Similar to International Fuel Tax Association (IFTA) procedures, the CRA requires a registered road carrier to file quarterly reports of fuel purchased and used within each listed province.  This may result in additional fuel charges or a rebate.  

Failure to timely register or pay the fuel charge may result in penalties and interest.  The Firm regularly provides U.S.-based motor carriers assistance when contacting the CRA and registering for the fuel charge.


Scopelitis’ Transportation Brief® is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.


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