Motor Fuel Tax & Carbon Tax
The tax rates for motor fuel tax and carbon tax vary depending on the type of fuel and if the fuel is clear or coloured. In some cases, the tax rates are also different depending on where you purchase the fuel and how you use it.
Motor Fuel Tax
Motor fuel tax applies to fuel sold for use or used to power internal combustion engines (e.g. cars, boats, airplanes, stationary engines etc.) and to propane for any use, unless a specific exemption applies.
If fuel (except propane) is sold for use other than in an internal combustion engine, motor fuel tax doesn't apply so long as specific invoicing and other requirements are met.
When the tax is charged on clear gasoline and clear diesel fuel there are also dedicated taxes (see below) added to the tax that apply in certain regions of the province and go to:
Carbon tax applies to the purchase or use of fuels such as gasoline, diesel, natural gas, heating fuel, propane and coal, unless a specific exemption applies. The use of fuel includes all uses, even if the fuel isn't combusted. Carbon tax also applies to the use of combustibles, such as peat and tires, when used to produce energy or heat.
Exemptions from Motor Fuel & Carbon Taxes
The following fuel is exempt from both motor fuel tax and carbon tax:
Federal Gas Excise Rates
On top of these taxes the Federal government also requires taxes on fuel (see below)
GST also applies to your final gas receipt