Compliance
Navigating Canada’s New Fuel Excise Tax Suspension: What Businesses Need to Know
From April to September 2026, excise tax on fuel enters suspension—this guide helps businesses comply, report, and take advantage without risk.
By NomadicTax Research Team • 5-8 min read • June 26, 2026
## Overview of the Suspension
Between **April 20 and September 7, 2026**, the Canadian federal government has suspended the fuel excise tax for certain fuels—including gasoline, diesel, and aviation fuels—setting rates to **zero cents per litre**. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/04/temporarily-suspending-the-federal-fuel-excise-tax.html?utm_source=openai))
## What Businesses Should Be Aware Of
- **Scope**: Applies to gasoline, unleaded aviation gasoline, diesel, aviation fuel (other than aviation gasoline), and leaded aviation gasoline during the suspension period. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/technical-information/excise-taxes-special-levies/excise-taxes-special-levies-notices/etsl82-proposed-temporary-rate-reductions-excise-tax-on-certain-types-fuel.html?utm_source=openai))
- **Inventory matters**: Only fuel delivered/imported **after April 19, 2026**, and before September 8, 2026, is eligible. Stock held before April 20 or unsold inventory beyond September 7 outside the proposed regime may not benefit. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/technical-information/excise-taxes-special-levies/excise-taxes-special-levies-notices/etsl82-proposed-temporary-rate-reductions-excise-tax-on-certain-types-fuel.html?utm_source=openai))
- **Filing and reporting**: Businesses licensed under the Excise Tax Act must continue filing returns (Form B200), reporting quantities and applying correct rates for different deliveries within reporting periods. Mixed-rate periods require manual calculation. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/technical-information/excise-taxes-special-levies/excise-taxes-special-levies-notices/etsl82-proposed-temporary-rate-reductions-excise-tax-on-certain-types-fuel.html?utm_source=openai))
## Risks and Compliance Pitfalls
- **Mis-reporting fuel usage**: If volumes aren’t tracked by date of delivery (before vs after April 19), you risk overpaying or penalties.
- **Unsynchronised system updates**: Your accounting software must handle changing rates for mid-period reporting.
- **Stock/distribution channels**: Fuel held in inventory as of April 20 or September 8 may fall outside eligibility. Clarify chain of custody.
## Example Scenario
A transport company operates a large fleet. In one reporting period (April 1-30), they receive 100,000 L diesel: 30,000 L before April 20, and 70,000 L after. Tax payable = **30,000 × \$0.04 + 70,000 × \$0.00 = \$1,200**. Reporting must reflect these differences. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/technical-information/excise-taxes-special-levies/excise-taxes-special-levies-notices/etsl82-proposed-temporary-rate-reductions-excise-tax-on-certain-types-fuel.html?utm_source=openai))
## Actionable Steps for Businesses
- Track fuel deliveries by date strictly.
- Update internal systems to tag eligible vs non-eligible fuel.
- File monthly (or semi-annual if authorized) excise tax returns per CRA requirements—even if payable amount is zero.
- Consult CRA’s notice ETSL82 for detailed rules and sample calculations. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/technical-information/excise-taxes-special-levies/excise-taxes-special-levies-notices/etsl82-proposed-temporary-rate-reductions-excise-tax-on-certain-types-fuel.html?utm_source=openai))