News and Insights

Ontario Repeals the Fuel Tax Exemption for Biodiesel 

Tax Development Apr 23, 2014

Effective April 1, 2014, all fuel used to generate power in an internal combustion engine, including biodiesel which was previously exempt, is taxable at 14.3 cents/litre. The tax will also apply to any portion of biodiesel blended with petroleum based diesel fuel for use in a motor vehicle.

Biodiesel manufacturers, importers, exporters, and transporters will now be required to register with the Ministry of Finance under the Fuel Tax Act.  Wholesalers must register to become a designated collector in order to acquire untaxed biodiesel product.  In addition, manufacturers, collectors, importers, exporters or interjurisdictional transporters of biodiesel will be required to file a monthly report and make remittances of any fuel tax collectible and payable by the 25th day of the following month. 

Further details on this exemption withdrawal may be found in the Notice, “Revocation of Biodiesel Exemption”.