Canada - English


  • Service: Tax, Domestic Tax Services, Private Company (KPMG Enterprise) Tax Services
  • Date: 8/26/2014

Tax Increase on Aviation Fuel Effective September 1, 2014  

Canadian Tax Adviser


August 26, 2014


This is a reminder that on September 1, 2014, the Ontario tax on aviation fuel will increase by one cent per litre and will continue to increase by one cent per litre on April 1 for the next three years.

The 2014 Ontario budget proposed to raise the tax on aviation fuel to 3.7 cents per litre (from 2.7 cents per litre) in 2014, with an additional tax increase of one cent per year in 2015, 2016, and 2017.


Tax amounts
Ontario's current rate for aviation fuel is 2.7¢ per litre. However, the rate increases to:


  • 3.7¢ per litre on September 1, 2014
  • 4.7¢ per litre on April 1, 2015
  • 5.7¢ per litre on April 1, 2016
  • 6.7¢ per litre on April 1, 2017.


You must register with Ontario if you are an:


  • Importer of gasoline, aviation fuel, or propane
  • Exporter of gasoline, aviation fuel, or propane
  • Operator of commercial vehicles travelling into or out of Ontario licensed under the International Fuel Tax Arrangement (IFTA)
  • Interjurisdictional transporter of fuel into or out of Ontario licensed under IFTA, and a
  • Collector (including propane retail dealers who buy tax-exempt propane for re-sale to customers).


For more information, contact your KPMG adviser.



Information is current to August 26, 2014. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500



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