Carbon Levy Roles and Responsibilities
The PEI provincial carbon levy is no longer charged on petroleum fuels after July 1, 2023. This section provides historical information for the period (April 1, 2019 to June 30, 2023) that may still be necessary for the roles and responsibilities under the PEI Climate Leadership Act and Regulations.
For wholesalers and retailers
I hold a license under IRAC to wholesale fuel, what must I do under the federal fuel charge effective July 1, 2023?
Wholesalers should contact the federal government to determine their roles and responsibilities under the federal fuel charge. Wholesalers can call 1-866-330-3304.
Additional information can be found on the Government of Canada website: Fuel Charge Registration, FCN 1 and FCN 6.
I retail fuel to purchasers that I buy from a wholesaler. What must I do for the transition from the Provincial Carbon Levy to the Federal Fuel Charge on July 1, 2023?
If you are a retailer of fuel, the fuel you have on-hand on July 1, 2023 may be subject to the federal fuel charge. You should contact the federal government at 1-866-330-3304 to determine your responsibilities on the transition day (July 1, 2023).
More information is available on the Government of Canada website at: Charge on fuel held in a listed province on adjustment day.
For consumers and others
I am a trucker and a member of the International Fuel Tax Agreement (IFTA). How does the the transition to the federal backstop on July 1, 2023 affect IFTA carriers.?
If you are an IFTA carrier, and not already registered with the federal government for IFTA, you should contact 1-866-330-3304.
Additional information is available from the federal government at: Fuel Charge Registration, FCN 1 and FCN 6.
Beginning July 1, 2023, the PEI carbon levy will no longer be included in the IFTA tax rate for PEI. You will see this IFTA tax rate change for PEI beginning on the Q3-2023 IFTA return.
How do I know if I am a large emitter?
If you are an industrial facility that emits 50 kilotonnes (kt) or more of carbon dioxide equivalent (CO2e) per year, you may be a large emitter. If you are not already registered with the federal government, contact 1-866-330-3304 to determine your eligibility to register as a large emitter and to find out your responsibilities under the Greenhouse Gas Pollution Pricing Act.
Notices to Agents
Gasoline Tax Generic Return
The PEI carbon levy will no longer be collected on the sale of petroleum products on July 1, 2023. If you are using the PEI generic return to remit the provincial gasoline tax on petroleum sales in PEI on or after July 1, 2023, you can set the PEI carbon levy tax rate for each fuel type to zero.
Instructions to complete the form can be found here.
Notices to Retailers
Inventory On-Hand
If you are a retailer of fuel, the fuel you have on-hand on July 1, 2023 may be subject to the federal fuel charge. You should contact the federal government at 1-866-330-3304 to determine your responsibilities on the transition day (July 1, 2023).
More information is available on the Government of Canada website at: Charge on fuel held in a listed province on adjustment day.
Notices to Wholesalers
If you are petroleum wholesaler in PEI and are not yet registered with the federal government for the Fuel Charge, you are encouraged to call 1-866-330-3304 to determine your responsibilities for the federal Fuel Charge.
Additional information is available from the federal government at: Fuel Charge Registration, FCN 1 and FCN 6.
Notice to IFTA Carriers
If you are an IFTA carrier, and not already registered with the federal government for IFTA, you should contact 1-866-330-3304.
Additional information is available from the federal government at: Fuel Charge Registration, FCN 1 and FCN 6.
Beginning July 1, 2023, the PEI carbon levy will no longer be included in the IFTA tax rate for PEI. You will see this IFTA tax rate change for PEI beginning on the Q3-2023 IFTA return.
Notice to Marked Fuel Permit Holders
If you are marked fuel permit holder in PEI, you are encouraged to call 1-866-330-3304 to determine if you will be exempt for the federal Fuel Charge.
Additional information can be found on the Government of Canada website at: Fuel Charge Relief.
Contact Us
In-house expertise is available to answer your questions.
Phone: 902-368-4070
Email: taxandland@gov.pe.ca