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)
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)
- 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)
- 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)
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)
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)