News and Insights

Ontario Fuel Tax Bulletin FT 1-2009, “Fuel used by Railways in Ontario”

Tax Development Sep 21, 2009

This bulletin, which is intended to advise railway operators about the requirements for fuel use, registration and reporting under the Ontario Fuel Tax Act (“FTA”), has recently been revised by Ontario. The FTA imposes a tax on fuel used to propel railway equipment operated on rails in connection with a public transportation system (goods or passengers) at a rate of 4.5 cents per litre. All provinces in Canada require railways that operate in more than one province to pay tax based on fuel used in their jurisdiction.