Revised May 2008

• On May 17, 2007, the Budget Measures and Interim Appropriations Act, 2007 received Royal Assent (c. 7, S.O. 2007). This statute includes amendments to the Tobacco Tax Act.

• In addition, measures relating to the Fuel Tax Act were announced in the 2007 Ontario budget. These proposed amendments must be passed by the Legislature and receive Royal Assent to become law. 

• This notice is not exhaustive and should not be considered as a substitute for the legislation.

Tobacco Tax Act

Enforcement Measures

The Budget Measures and Interim Appropriations Act, 2007 included amendments to the Tobacco Tax Act  that further enhance Ontario’s efforts to enforce tobacco tax compliance and protect tobacco tax revenue. These enforcement measures include:

• temporarily prohibiting a retail dealer from selling and storing tobacco products where the retail dealer has been repeatedly found in violation of the Tobacco Tax Act.  The prohibition may be for a period ranging from 15 days to 180 days, depending on the circumstances

• prohibiting wholesalers from delivering tobacco to locations of retail dealers that are subject to a temporary prohibition from selling and storing tobacco products

• providing for the authority to enter into an agreement for the collection of tobacco tax on tobacco products brought into Ontario by post or courier from outside Canada.

Further amendments will also be proposed to increase sanctions and enforcement measures associated with the distribution and possession of contraband tobacco.  Upon these proposed amendments being introduced in the Legislature a bulletin providing further details will be issued.

Fuel Tax Act

Railway Use of Coloured Fuel

The Fuel Tax Act requires railways to use clear fuel for their Ontario operations. However, where railways operate across provincial and international boundaries, they may encounter requirements to use coloured fuel in other jurisdictions.

To minimize the burden on railways to comply with the varying requirements, Ontario has an administrative practice that permits railways to use coloured fuel for their Ontario operations.

As announced in the 2007 Ontario Budget, amendments to the Fuel Tax Act will be proposed to reflect current administrative practice and ensure railways are registered with Ontario for fuel tax purposes.

Ministry of Revenue staff will communicate with railways operating in Ontario to develop a registration system that will support the appropriate reporting and remittance of fuel tax.

Upon the proposed amendments being introduced in the Legislature a bulletin providing further details will be issued.

For More Information

Ministry of Revenue
Tax Advisory Services Branch
Motor Fuels, Tobacco & Land Taxes
33 King Street West
PO Box 625
Oshawa ON  L1H 8H9

• Toll-free: 1 866 ONT-TAXS (1 866 668-8297)
• Fax: 905 436-4511
• TTY (Teletypewriter): 1 800 263-7776

This publication and various other English and French bulletins published by the Ministry of Revenue may be obtained online at ontario.ca/revenue.

© Queen's Printer for Ontario, 2008

ISBN 978-1-4249-3931-2