News and Insights

Newfoundland and Labrador Releases Federally Approved Approach to Carbon Pricing

Tax Development Nov 07, 2018

The Government of Newfoundland and Labrador announced that the province’s carbon pricing plan has been approved by the Federal Government. The province’s plan includes initiatives to support the green economy and provide exemptions from carbon tax for key Newfoundland and Labrador industries, including agriculture, fishing, forestry, and natural resource exploration. Consumers will benefit from an exemption on the purchase of home heating fuels, which would be taxable under the Federal Plan. The province will adopt the federally mandated carbon tax on gasoline and diesel at 4.42 cents and 5.37 cents respectively, while offering exemptions for aviation fuel, interprovincial marine transportation, municipalities, and off-grid diesel electricity generation.