Canada: Federal fuel charge beginning 1 July 2023 (New Brunswick)

New Brunswick announced that it would replace its provincial fuel charge with federal fuel charge, effective 1 July 2023

Federal fuel charge beginning 1 July 2023 in New Brunswick

The federal fuel charge will take effect in New Brunswick as of 1 July 2023.

Previously, New Brunswick announced in February 2023 that it would replace its provincial fuel charge with the federal fuel charge, effective 1 July 2023. The province confirmed this change in its 2023 provincial budget. As a result, the federal fuel charge is scheduled to apply, as of 1 July 2023, in New Brunswick, Nova Scotia, Newfoundland and Labrador and Prince Edward Island, and will continue to apply in Alberta, Saskatchewan, Manitoba, Ontario, Yukon and Nunavut.


The federal carbon pollution pricing system includes a fuel charge applied to fossil fuels, as well as an output-based pricing system for industrial facilities that emit greenhouse gases above a certain threshold. These rules, which were introduced in 2018, apply in provinces and territories that do not have carbon pricing systems that meet the federal benchmark.

Compliance obligations

Fuel producers, emitters, importers and distributors, as well as air, marine, rail and road carriers, and certain users of fuel or combustible waste in New Brunswick, will have to determine if they are required or permitted to register for the federal fuel charge and prepare to meet the registration, reporting and compliance obligations under the federal rules.

Climate action incentive payments

In New Brunswick, 90% of direct proceeds from the federal fuel charge will be returned to individual residents through quarterly federal climate action incentive (CAI) payments. The quarterly CAI payments are effective from July 2023, as long as individuals have filed their income tax returns. Similar CAI payments are made to residents of other provinces when the federal fuel charge applies.

Read a May 2023 report prepared by the KPMG member firm in Canada


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