Motor fuel taxes in Canada

Gasoline Diesel Notes == Tax collection and rate changes ==

In March 2022, the Alberta government announced it would suspend the collection of the fuel tax starting April 1, as a way to fight the rising cost of fuel. In December 2023, the Alberta government announced that with lower oil prices, the fuel tax would be phased back in after Dec. 31, 2023. On March 15, 2025 the Government of Canada enabled regulations that set the federal carbon tax to 0. The effective date for the change was April 1, 2025. The affected provinces and territories were Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Nunavut, Ontario, Prince Edward Island, Saskatchewan, and Yukon. After this announcement, Premier of British Columbia David Eby announced the elimination of the BC carbon tax on April 1, 2025. ==Tax revenues==

The Government of Canada collects about $5 billion per year in excise taxes on gasoline, diesel, and aviation fuel as well as approximately $1.6 billion per year from GST revenues on gasoline and diesel (net of input tax credits). The Canada Revenue Agency, a part of the government, collects these taxes. Collectively, the provincial governments collect approximately $8 billion per year from excise taxes on gasoline and diesel. The federal taxes go into general coffers and help to fund a range of programs: $2 billion of the approximately $5 billion collected from federal excise taxes goes into the now permanent annual Gas Tax Fund for municipal infrastructure. Provincial tax revenues usually go to fund road repair and construction, and additionally in some provinces a portion of revenues (for example, 2 cents/litre in Ontario) is also distributed directly to municipalities. == Criticism ==

In Quebec, an Ipsos poll released in 2022 found that 73% of the population thought that the taxes levied on fuel were too high. == See also ==