ETSL82 Temporary rate reductions of excise tax on certain types of fuel

Excise Taxes and Other Levies Notice

June 2026

This version replaces the one dated May 2026. This notice has been updated to reflect changes to the Excise Tax Act included in the Spring Economic Update 2026 Implementation Act which received royal assent on June 18, 2026.

Except as otherwise noted, all statutory references in this notice are to the provisions of the Excise Tax Act. The information in this notice does not replace the law found in the Act and its regulations.

If this information does not completely address your situation, refer to the Act or regulations or call 1‑866‑330‑3304 for additional information.

Overview

On April 14, 2026, the Government of Canada announced temporary rate reductions of the excise tax on certain types of fuel. The tax rates are reduced to zero for unleaded gasoline, unleaded aviation gasoline, leaded aviation gasoline, diesel fuel, and aviation fuel (affected fuels) that are manufactured or produced and delivered to a purchaser, sold by a licensed wholesaler and delivered to a purchaser, or imported into Canada after April 19, 2026, and before September 8, 2026.

Part III of the Act imposes excise tax on petroleum products manufactured or produced in or imported into Canada. Excise tax is generally payable by the manufacturer or producer at the time of delivery to a purchaser. Persons that have excise tax payable are required to be licensed under the Act and must also account for and pay excise tax. For goods that are imported into Canada, the excise tax is payable by the importer in accordance with the provisions of the Customs Act. For more information on the application of excise tax to the importation of fuel, contact the Canada Border Services Agency.

Rates of excise tax

The following table presents the excise tax rates for unleaded gasoline, unleaded aviation gasoline, leaded aviation gasoline, diesel fuel, and aviation fuel set out in Schedule I to the Act as well as the reduced rates.

Inventory

The temporary rate reductions applies on affected fuels delivered or imported after April 19, 2026, and before September 8, 2026. A person holding tax-paid inventory on April 20, 2026, is not eligible for a refund. In addition, no excise tax would be payable on inventory held on September 8, 2026, when the temporary rate reductions cease to apply.

Filing and reporting

Every person that is required to file a return under the Act must continue to do so for each reporting period, even if the excise tax payable is $0. The person must use Form B200, Excise Tax Return, to report the quantities and excise tax payable on a monthly basis unless authorized to report on a semi-annual basis. The return and any related payment must be received by the end of the month following the reporting period.

As the temporary rate reductions begin and end partway through reporting periods, multiple rates will apply for each period. For the reporting periods with multiple rates, taxpayers are still required to report the total quantity of fuel delivered on their return. Taxpayers need to calculate the quantity for each tax rate and report the tax payable based on the rates that applied at the time of delivery. Taxpayers filing electronically need to manually enter the tax payable amounts in the "Tax payable in dollars" field. Taxpayers should not use the "Calculate" button during the partial reporting periods of April and September as incorrect rates could be automatically calculated on the total volume of fuel.

Enquiries

For any questions related to this measure, contact:

Excise and Specialty Tax Directorate
Canada Revenue Agency
Place de Ville Tower A 5th floor
320 Queen St
Ottawa ON  K1A 0L5

Telephone: 1-866-330-3304

Further information