As a result of recent amendments made by the provincial government of New Brunswick to the Gasoline and Motive Fuel Tax Act, a carbon tax on fossil fuels is set to be introduced once legislated at a rate of $30 per tonne, effective April 1, 2020. The tax will replace the federal fuel charge imposed by Government of Canada in the province.
This tax, which is aimed at aiding the province in reaching national target of 30% reduction in carbon emissions by 2030, will be subject to annual reviews to ensure compliance with federal benchmark requirements. The benchmark price increases to $40 per tonne in 2021 and $50 per tonne in 2022. For further details, please refer to the New Brunswick News Release, “Next step taken to introduce made-in-New Brunswick carbon tax.”