PDF Version

1st Session, 43rd Parliament

(2025) FIRST READING

The following electronic version is for informational purposes only.

The printed version remains the official version.

HONOURABLE BRENDA BAILEY

MINISTER OF FINANCE

BILL 8 – 2025

CARBON TAX AMENDMENT ACT, 2025

HIS MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

CLAUSE 1: [Carbon Tax Act, sections 15 and 18] repeals the requirements

for a vendor to be appointed as a collector in order to sell fuel, and

for a person to be a registered retail dealer in order to sell natural gas.

1 Sections 15 and 18 of the Carbon Tax Act, S.B.C. 2008, c. 40, are repealed.

CLAUSE 2: [Carbon Tax Act,

section 28] is related to amendments made by this Bill to the Schedules of the Act.

Section 28 is amended by adding the following subsection:

(3.1) Despite subsection (3), a retail dealer of natural gas is not required to remit to the government an amount collected from a person as if it were tax under this Act in respect of natural gas delivered on or after April 1, 2025 if the retail dealer, in accordance with

section 36 (1.1), refunds or credits that amount to the person.

CLAUSE 3: [Carbon Tax Act,

section 35] is related to amendments made by this Bill to the Schedules of the Act.

Section 35 is amended by adding the following subsection:

(12) Despite

section 28 (5), if, on or after April 1, 2025, a deputy collector or retail dealer who was required to provide an inventory under subsection (1) of this

section receives, in respect of fuel included in the inventory, an amount as if it were security under this Act, the deputy collector or retail dealer must remit the amount received to the government at the prescribed time and in the prescribed manner.

CLAUSE 4: [Carbon Tax Act,

section 36] is related to amendments made by this Bill to the Schedules of the Act.

Section 36 is amended by adding the following subsections:

(1.1) Despite subsection (1) of this

section and

section 42 (1) (a), if a person has paid to a retail dealer of natural gas an amount as if it were tax in respect of natural gas delivered on or after April 1, 2025, the retail dealer must, within 180 days after the date on which the amount was paid, refund or credit that amount to the person.

(1.2) A person who has applied for or received a refund or credit from a retail dealer of natural gas under subsection (1.1) is not entitled to, and must not request, a refund under subsection (1) in respect of the same payment of an amount as tax.

CLAUSE 5: [Carbon Tax Act,

section 37] is related to amendments made by this Bill to the Schedules of the Act.

Section 37 (2) is amended by striking out " has paid security on fuel " and substituting " has paid an amount as security, or an amount as if it were security, on fuel ", and by striking out " the difference between the amount of security the person paid " and substituting " the difference between the amount the person paid ".

CLAUSE 6: [Carbon Tax Act,

section 84] adds limited, retroactive regulation-making authority to the Act.

Section 84 is amended by adding the following subsections:

(8) A regulation made on or before December 31, 2025 under this

section for the purposes of

section 23 (7) or 35 (12), or under subsection (3) (a), (b), (

c) or (

s) of this section, may be made retroactive to April 1, 2025 or a later date, and if made retroactive is deemed to have come into force on the specified date.

(9) A regulation made on or before December 31, 2026 under this

section in relation to refunds may be made retroactive to April 1, 2025 or a later date, and if made retroactive is deemed to have come into force on the specified date.

CLAUSE 7: [Carbon Tax Act,

Schedule 1] sets to zero the carbon tax rates for fuels.

Schedule 1 is amended by repealing the Table and substituting the following:

Table

Column

Column

Column

Column

Item

Type of fuel

Rate of tax for the year starting April 1, 2024

Rate of tax for the year starting April 1, 2025 and each subsequent year starting April 1

Aviation Fuel

19.59 ¢/L

0.00 ¢/L

Gasoline

17.61 ¢/L

0.00 ¢/L

Heavy Fuel Oil

25.50 ¢/L

0.00 ¢/L

Jet Fuel

20.65 ¢/L

0.00 ¢/L

Kerosene

20.65 ¢/L

0.00 ¢/L

Light Fuel Oil

20.74 ¢/L

0.00 ¢/L

Methanol

8.78 ¢/L

0.00 ¢/L

Naphtha

18.03 ¢/L

0.00 ¢/L

Butane

14.24 ¢/L

0.00 ¢/L

Coke Oven Gas

5.60 ¢/m 3

0.00 ¢/m 3

Ethane

8.15 ¢/L

0.00 ¢/L

Propane

12.38 ¢/L

0.00 ¢/L

Natural Gas

15.25 ¢/m 3

0.00 ¢/m 3

Refinery Gas

17.18 ¢/m 3

0.00 ¢/m 3

High Heat Value Coal

178.48 $/tonne

0.00 $/tonne

Low Heat Value Coal

141.80 $/tonne

0.00 $/tonne

Coke

254.38 $/tonne

0.00 $/tonne

Petroleum Coke

30.18 ¢/L

0.00 ¢/L

Gas Liquids

13.31 ¢/L

0.00 ¢/L

Pentanes Plus

14.24 ¢/L

0.00 ¢/L

CLAUSE 8: [Carbon Tax Act,

Schedule 2] sets to zero the carbon tax rates for combustibles.

Schedule 2 is amended by repealing the Table and substituting the following:

Table

Column

Column

Column

Column

Item

Type of combustible

Rate of tax for the year starting April 1, 2024

Rate of tax for the year starting April 1, 2025 and each subsequent year starting April 1

Peat

81.76 $/tonne

0.00 $/tonne

Combustible Waste

159.78 $/tonne

0.00 $/tonne

Transitional Provision

CLAUSE 9: [Transition – regulations] provides transitional regulation-making authority in relation to the amendments made by this Bill.

Transition – regulations

(1) Despite this Act or any other Act, the Lieutenant Governor in Council may make regulations as follows:

(

a) respecting any matter that the Lieutenant Governor in Council considers is not provided for, or is not sufficiently provided for, in the amendments made by this Act;

(

b) making provisions that the Lieutenant Governor in Council considers appropriate for the purpose of more effectively bringing the amendments made by this Act into operation;

(

c) making provisions that the Lieutenant Governor in Council considers appropriate for the purpose of preventing, minimizing or otherwise addressing any transitional difficulties encountered in bringing the amendments made by this Act into effect, including, without limitation, provisions making an exception to or modification of a provision in an enactment or providing for the application or continued application of a previous enactment;

(

d) resolving any errors, inconsistencies or ambiguities arising in the amendments made by this Act.

(2) A regulation made under subsection (1) may be made retroactive to April 1, 2025 or a later date, and if made retroactive is deemed to have come into force on the specified date.

(3) To the extent of any conflict between a regulation made under subsection (1) and another enactment, the regulation prevails.

(4) This

section and any regulations made under this

section are repealed on April 1, 2026 or on an earlier date prescribed by the Lieutenant Governor in Council.

Related Amendments

Income Tax Act

CLAUSE 10: [Income Tax Act,

section 8.1] eliminates the Climate Action Tax Credit.

Section 8.1 of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended

(

a) in subsection (2) by striking out " a month specified for the 2021 and subsequent taxation years " and substituting " a month specified for the 2021, 2022 and 2023 taxation years ", and

(

b) in subsection (3) by striking out " a month specified for a taxation year " and substituting " a month specified for a taxation year before the 2024 taxation year ".

Motor Fuel Tax Act

CLAUSE 11: [Motor Fuel Tax Act,

section 30] is related to amendments made by this Bill to the Carbon Tax Act .

Section 30 of the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317, is amended

(

a) by repealing subsections (7) and (8), and

(

b) by repealing subsections (9) and (10) and substituting the following:

(9) If the appointment of a person as a collector under this Act is suspended under this Act, the appointment of that person as a refiner collector under this Act is automatically suspended without notice for the same period as the suspension under this Act.

(10) If the appointment of a person as a collector under this Act is cancelled under this Act, the appointment of that person as a refiner collector under this Act is automatically cancelled without notice.

CLAUSE 12: [Motor Fuel Tax Act,

section 37.1] is related to amendments made by this Bill to the Carbon Tax Act .

Section 37.1 (8) and (9) is repealed.

CLAUSE 13: [Motor Fuel Tax Act,

section 71] adds limited, retroactive regulation-making authority to the Act.

Section 71 is amended by adding the following subsection:

(11) A regulation made on or before December 31, 2025 under this

section in relation to refunds, or under subsection (2) (d), may be made retroactive to April 1, 2025 or a later date, and if made retroactive is deemed to have come into force on the specified date.

Commencement

14 The provisions of this Act referred to in column 1 of the following table come into force as set out in column 2 of the table:

Item

Column 1

Provisions of Act

Column 2

Commencement

Anything not elsewhere covered by this table

The date of Royal Assent

Sections 1 to 5

April 1, 2025

Sections 7 and 8

April 1, 2025

Sections 10 to 12

April 1, 2025

Explanatory Notes

CLAUSE 1: [Carbon Tax Act, sections 15 and 18] repeals the requirements

for a vendor to be appointed as a collector in order to sell fuel, and

for a person to be a registered retail dealer in order to sell natural gas.

CLAUSE 2: [Carbon Tax Act,

section 28] is related to amendments made by this Bill to the Schedules of the Act.

CLAUSE 3: [Carbon Tax Act,

section 35] is related to amendments made by this Bill to the Schedules of the Act.

CLAUSE 4: [Carbon Tax Act,

section 36] is related to amendments made by this Bill to the Schedules of the Act.

CLAUSE 5: [Carbon Tax Act,

section 37] is related to amendments made by this Bill to the Schedules of the Act.

CLAUSE 6: [Carbon Tax Act,

section 84] adds limited, retroactive regulation-making authority to the Act.

CLAUSE 7: [Carbon Tax Act,

Schedule 1] sets to zero the carbon tax rates for fuels.

CLAUSE 8: [Carbon Tax Act,

Schedule 2] sets to zero the carbon tax rates for combustibles.

CLAUSE 9: [Transition – regulations] provides transitional regulation-making authority in relation to the amendments made by this Bill.

CLAUSE 10: [Income Tax Act,

section 8.1] eliminates the Climate Action Tax Credit.

CLAUSE 11: [Motor Fuel Tax Act,

section 30] is related to amendments made by this Bill to the Carbon Tax Act .

CLAUSE 12: [Motor Fuel Tax Act,

section 37.1] is related to amendments made by this Bill to the Carbon Tax Act .

CLAUSE 13: [Motor Fuel Tax Act,

section 71] adds limited, retroactive regulation-making authority to the Act.

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