How should I calculate the tax on blends of taxable and non taxable fuels?
You are only required to collect carbon tax on the taxable portion of a fuel blend. For example, biofuels, such as biodiesel, ethanol, biomass and wood, are not subject to carbon tax. This means, when selling B10, which consists of 10% pure biodiesel and 90% taxable diesel, you only charge and collect carbon tax on the diesel portion of the blend.
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