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AN ACT TO AMEND THE REVENUE ADMINISTRATION ACT NO. 2

Full Title:
AN ACT TO AMEND THE REVENUE ADMINISTRATION ACT NO. 2

Summary#

This Act updates Newfoundland and Labrador’s fuel tax rates and keeps in place a 7‑cent‑per‑litre cut that had been temporary. It sets clear per‑litre provincial taxes for different types of fuel bought at the pump in the province.

  • Regular gasoline: 7.5 cents per litre.
  • Diesel: 9.5 cents per litre.
  • Propane automotive fuel: 7 cents per litre.
  • Fuel for sea‑going boats that are not pleasure craft (for example, commercial vessels): 3.5 cents per litre.
  • Fuel delivered for use in aircraft: 2.5 cents per litre.
  • The law keeps a previous 7‑cent‑per‑litre reduction on selected fuels in place.

What it means for you#

  • Drivers

    • You pay a provincial tax of 7.5 cents per litre on gasoline at the pump.
    • Diesel vehicle owners pay 9.5 cents per litre in provincial tax.
    • The 7‑cent‑per‑litre cut that lowered provincial fuel tax continues on selected fuels, helping keep pump prices lower than before the cut.

  • Boat owners and operators

    • Commercial or other non‑pleasure sea‑going vessels get a lower rate: 3.5 cents per litre.
    • Recreational (pleasure) boats do not get the lower marine rate and pay the regular rate for their fuel.

  • Air travel

    • Fuel delivered for use in aircraft is taxed at 2.5 cents per litre, which can lower operating costs for airlines and charter operators.

  • Businesses

    • Companies that use a lot of fuel—like trucking, fishing, forestry, and aviation—see lower provincial fuel tax than before the earlier cut, which can help with operating costs.

  • Everyone

    • Because fuel is used to move goods and people, keeping these tax rates lower can slightly reduce pressure on prices for shipping and travel.

Expenses#

No publicly available information.

Proponents' View#

  • Keeps fuel costs lower for families and workers, offering cost‑of‑living relief.
  • Helps rural residents who often must drive long distances.
  • Supports key industries like fishing, shipping, and aviation by keeping fuel costs down, which can protect jobs.
  • Maintains a simple, known set of rates so retailers and buyers have clarity at the pump.
  • Extends a measure that has already been in place, avoiding a sudden jump in fuel prices.

Opponents' View#

  • Reduces provincial revenue that could fund health care, education, roads, and other services.
  • Lower fuel taxes can encourage more fuel use, making it harder to cut greenhouse gas emissions.
  • Benefits flow more to people who drive and use more fuel, offering less help to those without cars.
  • Treats commercial boats and aviation more favourably than recreational boaters, which some may see as unfair.
  • Keeping a temporary cut can make budgets harder to plan if fuel tax revenue stays lower for longer.