Canada Proposes Four-Phase Repeal of Federal Fuel Charge Framework
The Government of Canada has proposed legislative amendments to permanently repeal the fuel charge framework under Part 1 of the Greenhouse Gas Pollution Pricing Act (GGPPA). According to the Department of Finance Canada, this process will occur in four phases, following the cessation of the federal fuel charge on April 1, 2025, as a result of earlier regulatory changes.
The phased approach establishes a sequence of changes and deadlines for those who were previously required to pay the federal fuel charge. The backgrounder from the Department of Finance Canada details when various provisions will be removed and outlines the remaining responsibilities during each phase.
In the first phase, nearly all charging provisions under Part 1 of the GGPPA would be retroactively repealed as of April 1, 2025. The exception is a rule allowing certain railways to finalize their past fuel charge obligations from the previous year. This exception would remain in place until October 1, 2025.
The second phase, effective October 1, 2025, would repeal all rebate provisions. During the period between April 1 and October 1, some fuel uses, such as exports, may still qualify for rebates. Rebates for fuel charges paid in error or due to reassessment would remain available until the final phase.
The third phase, effective November 1, 2025, would repeal all registration provisions. Registrants would have until October 31, 2025, to file returns or claim rebates for periods ending before October 1, 2025. After this date, registration rules would no longer be in effect.
The final phase is scheduled for April 1, 2035, when all remaining provisions of Part 1 of the GGPPA would be repealed. This includes definitions, interpretation rules, and administrative requirements. The Canada Revenue Agency would retain the authority to process reassessments and amended returns for obligations that arose before April 1, 2025, as allowed by standard limitation periods.
All information is drawn from the Department of Finance Canada backgrounder dated May 27, 2025.