The key developments this week are the proposed extension of federal fuel-tax relief, new tariff-remission guidance, and CRA’s September GST/HST and excise update.
1. Federal fuel excise-tax suspension extended
Status: Proposed; legislative amendments required
On September 2, Finance Canada announced that the federal fuel excise tax suspension will be extended beyond September 7:
- 0¢ per litre through January 31, 2027
- From February 1–March 31, 2027: 5¢ gasoline, 5.5¢ leaded aviation gasoline, and 2¢ diesel/aviation fuel
- Full rates return April 1, 2027: 10¢, 11¢ and 4¢, respectively
The additional fiscal cost is estimated at $2.9 billion. Finance Canada announcement.
Affected: Trucking, delivery, construction, agriculture, food service, transportation and other fuel-intensive businesses.
Client impact: The previously anticipated September 8 fuel-cost increase should not occur if the extension is enacted. This is separate from the federal consumer carbon charge, which was eliminated earlier.
Action: Update fuel and transportation budgets, but identify the measure as proposed until the amending legislation passes.
2. Tariff-remission application process released
Status: Administrative guidance
Published: August 31, 2026
Tariffs effective: September 8, 2026
Finance Canada released the process for Canadian businesses seeking exceptional remission from the new 15%, 25% and 50% counter-tariffs.
Relief may be considered when affected inputs cannot reasonably be sourced in Canada or from non-U.S. suppliers, or where exceptional circumstances would severely affect the Canadian economy.
Applications require detailed tariff classifications, import volumes, sourcing evidence, contracts, manufacturing costs, pricing effects, employment consequences and competitor information. Only Canadian-registered companies may apply. Finance Canada remission guidance.
Affected: Importers and manufacturers dependent on affected U.S.-origin inputs.
Action: Identify clients with irreplaceable U.S. inputs and begin assembling HS codes, invoices, B3 records, alternative-supplier searches, contracts and financial-impact calculations. Remission is exceptional and should not be accrued before approval.
3. CRA publishes September GST/HST and excise update
Status: Administrative guidance
Published: September 3, 2026
CRA’s new quarterly publication confirms several items relevant to client files:
- Most CRA business correspondence is now delivered through My Business Account. Correspondence is considered received when posted, even if the business misses the email notification.
- Businesses wanting paper correspondence must formally request it.
- GST/HST coupon-rule amendments are enacted and generally deemed effective August 16, 2025. An ITC for a coupon-redemption payment requires that the payment be made exclusively in qualifying commercial activities.
- The federal fuel charge under the carbon-pricing legislation is repealed, although CRA administration provisions remain available until 2035 for outstanding compliance matters.
CRA Excise and GST/HST News No. 123.
Affected: All business-account clients; coupon issuers/redeemers and former fuel-charge registrants require additional attention.
Action: Verify client email addresses and establish a regular My Business Account/Represent a Client correspondence review. Review coupon ITCs where relevant.
4. Southern Ontario tariff assistance approaching
Status: Administrative program; expanded details due September 8
FedDev Ontario indicates that enhanced Regional Tariff Response Initiative details, including liquidity assistance, will become available September 8. FedDev Ontario program page.
Action: Prepare affected clients’ revenue history, evidence of tariff-related losses, cash-flow forecasts and project plans. Do not recognize assistance until eligibility and approval are confirmed.
No significant change this week
- Payroll/source deductions: No new CPP, EI or withholding calculation change.
- T1 personal tax: No material new measure.
- T2 corporate tax: No material legislative or CRA filing change.
- Ontario tax: No material new Ontario tax measure requiring a client alert.
- Canada Gazette: The September 5 edition contains no material Income Tax Act or Excise Tax Act proposal. Canada Gazette.
Upcoming dates
- September 8: New U.S.-goods counter-tariffs begin; enhanced tariff-support details expected.
- September 8: CRA stops accepting Disability Tax Credit applications on versions of Form T2201 older than 2023. CRA guidance.
- September 15: Third 2026 personal-tax instalment.
- September 15: August source deductions due for regular monthly remitters.
