Federal Carbon Tax

/Products & Services/Energy/Federal Carbon Tax

Federal Carbon Tax

The Federal Carbon Tax rates are set annually on the first of April.

The Government of Canada, through the Greenhouse Gas Pollution Pricing Act charges a carbon tax on all fuel consumed in Ontario. The Federal Carbon Tax is charged on all diesel and gasoline products that is sold by AGRIS Co-operative.

If you have previously sent us a completed Carbon Tax Exemption form, you do not need to send one in each year unless you are making a change to the original.

Diesel fuel

17.83 cents per litre until April 1, 2024.

Gasoline fuel

14.31 cents on litre until April 1, 2024.

No carbon tax charge on Furnace oil starting November 9, 2023

The amounts above will show on your invoice on a separate line that will indicate the tax, and are not included in the price you pay for your fuel products. It is the legal responsibility of AGRIS Co-operative to charge and remit the tax to the federal government.

Under certain defined conditions, exemptions are available through the use of an exemption certificate. For farmers and greenhouse operators, download the form from the links above.

Fuel charge relief for farmers:

The operation of farm machinery for the purpose of farming (tractors, combines, etc.).
- Farm machinery also includes small and portable engines used in farming activities (chain saws, generators, etc.).

Fuel charge relief for greenhouse operators:

For the exclusive purpose of heating a greenhouse or generating carbon dioxide (CO2). These greenhouse purposes are 80% exempt. “Partial relief of the fuel charge (i.e., 80 per cent) is proposed to apply to propane that is exclusively for use in the operation of a commercial greenhouse for growing any plants, including vegetables, fruits, bedding plants, cut flowers, ornamental plants, tree seedlings and medicinal plants. It is also proposed that, in order for relief to be available, all or substantially all of the greenhouse building must be used for the growing of plants."

Fuel charge relief for Fishers:

a fisher and all of the following conditions are met:
- the fuel is for use exclusively in the operation of an eligible fishing vessel
- all or substantially all of the fuel is for use in the course of eligible fishing activities

For more information visit the Federal Government's website.

What's not exempt?

We understand that any kind of heating application not specified above is not exempt, as follows:

Barn heating for any purpose.
Crop drying.
Residential heating.
Fuel that is used in licensed vehicles.

What do I need to become exempt from the Federal Carbon Tax?

I'm a farmer

Eligible farmers must complete an L402 form, which can be provided by AGRIS Co-op or at the following Government of Canada link:

https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/l402.html

I'm a greenhouse operator

Eligible greenhouse operators must complete an L404 form, which can be provided by AGRIS Co-op, or at the following Government of Canada link:

https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/l404.html

I'm a fisher

Eligible fishers must complete an L403 form, which can be provided by AGRIS Co-op, or at the following Government of Canada link:

https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/l403.html

We cannot provide fuel exempt from the Federal Carbon Tax unless we have a completed copy of the required form on file. If you have previously sent in a completed Carbon Tax Exemption form, you do not need to send one in each year unless you are making a change to the original.

As noted on each exemption form, the original certificate is to be provided to your supplier (AGRIS Co-operative). Keep a copy of the certificate with your records and do not send the certificate to the Canada Revenue Agency.