Regulation - LGIC
Technical Amendments to Regulations to the Gasoline Tax Act and Fuel Tax Act
Regulation Number(s):
O.Reg. 78/23
O.Reg. 79/23
O.Reg. 80/23
O.Reg. 79/23
O.Reg. 80/23
Instrument Type:
Regulation - LGIC
Bill or Act:
Gasoline Tax Act and Fuel Tax Act
Summary of Decision:
Regulatory amendments have been passed to:
• Amend the interest rate calculation that applies to interjurisdictional carriers under Ontario's fuel and gasoline tax regulations to align with Ontario's obligations under the International Fuel Tax Agreement (IFTA) effective January 1, 2023; and
• Remove a reference in the gasoline tax regulations to a document defining natural gas that was never published by the Canadian General Standards Board, effective April 27, 2023.
• Amend the interest rate calculation that applies to interjurisdictional carriers under Ontario's fuel and gasoline tax regulations to align with Ontario's obligations under the International Fuel Tax Agreement (IFTA) effective January 1, 2023; and
• Remove a reference in the gasoline tax regulations to a document defining natural gas that was never published by the Canadian General Standards Board, effective April 27, 2023.
Analysis of Regulatory Impact:
No impact is anticipated.
Further Information:
O. Reg. 80/23
Proposal Number:
23-MOF011
Posting Date:
Summary of Proposal:
The proposed regulatory amendments would:
1. Amend the interest rate calculation that applies to interjurisdictional carriers under Ontario's fuel and gasoline tax regulations.
• Ontario is a party to the International Fuel Tax Agreement (IFTA), which is an agreement between Canadian provinces and most American states to make it easier for interjurisdictional carriers (e.g., truckers) to report and pay taxes on the motor fuels they use.
• The parties to IFTA, including Ontario, have agreed to an interest rate calculation that is different than what is currently in the Ontario regulations. The key difference in the calculation is that Ontario's regulation currently calculates the interest rate quarterly whereas, under the IFTA rules, it is calculated annually.
• This new calculation took effect January 1, 2023 and is now posted publicly on the IFTA website. The proposed changes to the fuel and gasoline tax regulations would align Ontario's regulatory interest rate calculation with IFTA.
2. Remove a reference in the gasoline tax regulations to a document defining natural gas that was never published by the Canadian General Standards Board.
• The regulation under the Gasoline Tax Act refers to a document defining natural gas that was never published by the Canadian General Standards Board. This reference should be removed from the regulation.
1. Amend the interest rate calculation that applies to interjurisdictional carriers under Ontario's fuel and gasoline tax regulations.
• Ontario is a party to the International Fuel Tax Agreement (IFTA), which is an agreement between Canadian provinces and most American states to make it easier for interjurisdictional carriers (e.g., truckers) to report and pay taxes on the motor fuels they use.
• The parties to IFTA, including Ontario, have agreed to an interest rate calculation that is different than what is currently in the Ontario regulations. The key difference in the calculation is that Ontario's regulation currently calculates the interest rate quarterly whereas, under the IFTA rules, it is calculated annually.
• This new calculation took effect January 1, 2023 and is now posted publicly on the IFTA website. The proposed changes to the fuel and gasoline tax regulations would align Ontario's regulatory interest rate calculation with IFTA.
2. Remove a reference in the gasoline tax regulations to a document defining natural gas that was never published by the Canadian General Standards Board.
• The regulation under the Gasoline Tax Act refers to a document defining natural gas that was never published by the Canadian General Standards Board. This reference should be removed from the regulation.
Contact Address:
Frost South, 7 Queen's Park Cres E,
Toronto, ON M7A 1Z5
Toronto, ON M7A 1Z5
Effective Date:
January 1, 2023
Decision:
Approved