Fuel Taxes

Res #: 12-05M
Number: 12
Year: 2005
Midterm: Yes
Expired: Yes
Responses Received: No

Resolution No. 12-05M

WHEREAS, we the farmers of Saskatchewan produce cheap food for the country; and

WHEREAS, the fuel price inputs have skyrocketed to extreme amounts;

THEREFORE BE IT RESOLVED, that we request the SARM Board to lobby the Government of Saskatchewan to support us in our production of cheap food by reducing the taxes charged on fuel used for producing food.

Response from the Honourable Mark Wartman, Minister of Agriculture and Food:

The province already exempts virtually all fuel taxes that are for agricultural purposes. Diesel fuel is completely exempt for farmers at an annual cost to the province of $81 million. Gasoline used by farmers for agricultural purposes (about 80 per cent) is completely tax free at a cost to the province of $33 million. Gasoline used by farmers for personal use (estimated 20 per cent) is taxable. Thus, the total cost to make fuel used for agricultural purposes free of tax is $114 million annually. The tax paid by farmers for a portion of gasoline assumed to be for personal use is $8 million annually. The province will take SARM's resolution No. 12 into consideration when reviewing these matters. The province recognizes that the large increases in the cost of fuel are causing difficulties for producers.