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Petroleum Tax

For more information on Nunavut’s Petroleum Products Tax email us at petroleumtax@gov.nu.ca.

Click on the link for a copy of Nunavut’s Petroleum Products Tax Act or Petroleum Products Tax Regulations.
 

Consultation – Website Notice – Fuel Tax Act

The Government of Nunavut (GN) is looking to modernize and improve Nunavut’s tax system. As a part of this work, we have identified several ways to update the Petroleum Products Tax Act (PPTA), which necessitates a repeal and replacement of this Act with a new Fuel Tax Act.

The Department of Finance has already identified several key areas for improvement:

  • Clarifying terminology and definitions
  • Simplifying administration
  • Enhancing enforcement
  • Establishing clear administrative penalties

Considering these changes to the fuel tax system, we encourage Nunavummiut to provide feedback and suggestions to the GN by September 16, 2022. This can be done directly through the comment box or the following points of contact:

  • Email - PetroleumTax@gov.nu.ca
  • Phone - 1-800-316-3324
  • Mail - Department of Finance, Taxation and Insurance, PO Box 2260. Iqaluit, NU, X0A 0H0

For further information you can visit the Department of Finance’s petroleum tax webpage.

Thank you for your interest in improving Nunavut’s fuel laws.
 

APPLICATION

Nunavut imposes petroleum products taxes on an ad-valorem basis and these are calculated as a percentage of a prescribed taxable price.
 

Rates of Tax

Please refer to the Nunavut Tax Rate Sheet for this year’s petroleum tax rates.

Collection of Tax

Tax is applied on sales to consumers but collected at the wholesale level and remitted monthly by fuel tax collectors. These collectors also remit tax on their own use.

Licensing

Petroleum wholesalers/importers must enter into a Collector's Agreement and a security bond may be required.

Monthly Reports

Fuel tax collectors are required to report and remit tax by the 28th day of each month, based on sales in the previous month.
 

COMPLIANCE MEASURES

Fines and Penalties

Penalties

The Minister may assess a penalty equal to 10% of the amount due up to $500 plus interest against any person who fails to remit any tax collected when required.

Fines

Maximum of $5,000 and any tax due and/or imprisonment up to 3 months.

Audit

In making an assessment the Minister shall not consider a period or periods of time greater than six years prior to the date of commencement of the inspection, audit or examination of the books of account, records or documents unless there is evidence that the person has committed fraud where no limitation applies.

For more information on Nunavut’s Petroleum Products Tax email us at petroleumtax@gov.nu.ca