Repeal of provincial Carbon Tax and implications for wholesalers and retailers

The Government of Newfoundland and Labrador is advising wholesalers and retailers of carbon products that the repeal of the provincial carbon tax will occur on July 1, 2023. The provincial tax will be replaced by the federal fuel charge (aka federal backstop). The federal tax does not allow for the carbon tax exemptions that existed under the provincial carbon tax. Therefore, the government is reminding wholesalers and retailers that they must stop charging the provincially administered tax on July 1, 2023. Wholesalers and retailers can apply for a refund of the carbon tax paid on existing inventory of carbon products that won’t be sold before July 1, 2023.