The EHC is not a government tax, but instead considered part of the product price and can be passed along the supply chain to the retail level. The fees collected cover the costs of collecting and recycling the products.
In most of Canada, Producers of automotive materials are required by Regulation to have a collection and management program for the materials that they make and sell. The Used Oil Management Associations of Canada deliver these programs on behalf of Producers. More information on the programs, including information on how the collected funds are managed can be found here – https://usedoilrecycling.com