Federal Carbon Pricing Program

Federal Carbon Pricing Program

What is The Federal Carbon Tax?

The Federal Government through its Greenhouse Gas Pollution Pricing Act will begin to charge a carbon tax on all fuel consumed in the Province of Ontario. Specifically, the Carbon Tax will be charged on all propane, gasoline and diesel products sold by The Sarjeant Company Limited. The rates set annually on April 1st, 2019 as follows:

Propane – 3.10 per litre

Gasoline – 4.42 cents per litre

Diesel – 5.37 cents per litre

Kerosene – 5.16 cents per litre

It is the legal responsibility of The Sarjeant Company Ltd. to both charge and remit the tax to the federal government.

Downloadable Exemption Forms:

Fuel Charge Exemption Form – Farmers

Fuel Charge Exemption Form – Greenhouse Operators

Fuel Charge Exemption Form – Fishers

What is Exempt from The Federal Carbon Tax?
Relief for Farmers

Under certain defined conditions, exemptions are available through the use of an exemption certificate. They are limited to:

– The operation of farm machinery for the purpose of farming (tractors, combines, etc.).
– Farm machinery also includes small & portable engines used in farming activities (chain saws, generators, etc.)

“Specifically, the GGPPA provides that a registered distributor can generally deliver, without the fuel charge applying, gasoline or light fuel oil (e.g., diesel) to a farmer at a farm, if the fuel is for use exclusively in the operation of eligible farming machinery and all or substantially all of the fuel is for use in the course of eligible farming activities.”*

Commercial greenhouse operations

for the exclusive purpose of heating a greenhouse or generating carbon dioxide (CO2).  These greenhouse purposes are 80% exempt. “Partial relief of the fuel charge (i.e., 80 per cent) is proposed to apply to propane that is exclusively for use in the operation of a commercial greenhouse for growing any plants, including vegetables, fruits, bedding plants, cut flowers, ornamental plants, tree seedlings and medicinal plants. It is also proposed that, in order for relief to be available, all or substantially all of the greenhouse building must be used for the growing of plants.”*

“The relief is proposed to be provided upfront through the use of exemption certificates, similar to other exemption certificates under the GGPPA, such that only 20 per cent of the fuel charge applies to propane that is delivered by a registered distributor to an eligible greenhouse operator if the fuel is exclusively for use in the heating of, or for the production of carbon dioxide for use in the operation of, a commercial greenhouse.”*
An eligible greenhouse operator is proposed to be a person that carries on a greenhouse operation with a reasonable expectation of profit.

What is NOT Exempt from the Federal Carbon Tax?

It is our understanding that any kind of heating application not specified above is not exempt, as follows:

– Barn heating for any purpose
– Crop drying
– Residential heating
– Fuel that is used in licensed vehicles

Please note we cannot provide fuel exempt from the Federal Carbon Tax unless we have a completed copy of the required form on file.
As noted on each exemption form, the original certificate is to be provided to your supplier. Keep a copy of the certificate with your records and do not send the certificate to the Canada Revenue Agency.

We will continue to add information to our website as it becomes available to us. We also encourage our customers to review the regulation and to understand the expectations and penalties for making a false declaration. If you have questions, please let our customer account representatives assist.


More Information:
Greenhouse Gas Pollution Pricing Act

Government of Canada – Justice Laws *exemptions found in Section 36

Department of Finance

Targeted Relief for Farmers and Fishers, and Residents of Rural and Remote Communities
Fuel Charge Relief

Revenue Canada

Climate Action Incentive – CAI (payment)
Schedule 14 – Ontario Residents – CAI