Canada: Elimination of federal fuel charge effective April 1, 2025

Businesses previously registered for the FFC will have their registrations canceled by November 1, 2025.

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April 1, 2025

The federal consumer carbon price, specifically the federal fuel charge (FFC), is eliminated effective today, April 1, 2025. Although the federal government has indicated that it intends to continue with the industrial carbon pricing, the federal fuel charge (FFC) no longer applies, and provinces and territories are no longer required to have a consumer-facing carbon price in place.

Businesses previously registered for the FFC will have their registrations canceled by November 1, 2025. They are not required to file FFC returns for periods beginning after March 31, 2025, unless a positive FFC amount is payable. The final payments for the Canada Carbon Rebate for Small Businesses and the Return of Fuel Charge Proceeds to Farmers Tax Credit will be issued for the 2024-2025 fuel charge year.

Provinces such as British Columbia and the Northwest Territories have announced changes to their carbon pricing measures in response to the FFC's elimination. Additionally, eligible individuals will receive their final Canada carbon rebate payment starting April 22, 2025.

Read a March 2025 report prepared by the KPMG member firm in Canada

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