Bill C-38, titled An Act to amend the Excise Tax Act (extension of the federal fuel excise tax relief), would amend the federal Excise Tax Act. Its short title is the Canadian Fuel Affordability Act. The stated goal is to extend temporary federal fuel excise-tax relief; the text provided is a bill, not proof that these changes are in force.
The bill’s summary says the temporary suspension of the federal fuel excise tax would continue until January 31, 2027. The supplied operative text does not include the rules that set the tax amount during this period.
From February 1 through March 31, 2027, the bill would set certain listed fuel-tax rates at half their regular amounts: 10¢ to 5¢, 11¢ to 5.5¢, and 4¢ to 2¢.
The changes cover unleaded gasoline, unleaded and leaded aviation gasoline, diesel fuel, and aviation fuel.
If passed, the provision covering tax payable after April 19, 2026 and before February 2027 would be deemed in force from September 8, 2026. The half-rate provision would start February 1, 2027.
Fuel buyers: The bill would reduce or suspend federal excise tax on the listed fuels for the stated periods. It does not require sellers to pass the full tax reduction on to buyers, so any effect on prices at the pump is unclear.
Businesses dealing in fuel: The tax amounts applicable to the listed fuels would change. The supplied text does not set out new collection, filing, or payment procedures.
Taxpayers: The bill changes federal fuel-tax rates temporarily. It does not create a new benefit, fee, fine, or fuel-buying program.
No cost estimate is included in the available material.
Lower or suspended excise-tax rates would reduce federal tax collected on the affected fuel during the specified periods, but the size of that reduction is not stated.
The material gives no estimate of staffing, administration, or business costs.
The supplied text does not include the rules that determine the tax amount under the provision covering tax payable before February 2027. The bill’s summary describes that period as a tax suspension, but the exact operative rules cannot be checked here.
The parent Excise Tax Act was not supplied, so the current law and how these amendments change it cannot be verified.
The text does not explain how much of the tax reduction, if any, buyers would see in fuel prices.
No estimate is provided for the effect on federal revenue.
Lower tax collection means less federal revenue from the affected fuels; the material does not show the size of that reduction or how it would be managed.
The bill does not ensure that the tax reduction will be reflected in prices paid by fuel buyers.
The operative rules for the period through January 2027 are missing from the supplied text, making the full effect of that extension difficult to assess.