POP: Carbon Tax Farm Fuels Exemption
Res #: POP 3-19A
Responses Received: Yes
Departments: Saskatchewan Ministry of Agriculture
WHEREAS the new carbon tax specifically states that fuels for farm use will be exempt from this tax;
WHEREAS the Federated Co-op intends to charge the carbon tax on farm fuel purchased for farm vehicles, machinery and slip tanks at their cardlock facilities;
BE IT RESOLVED that SARM lobby the provincial government to ensure all purchases of farm fuels are exempted from the carbon tax, wherever they may be purchased.
Responses From: The Ministry of Environment
May 27, 2019
The provincial government has been very clear in its opposition to the imposition of a federal carbon tax on the provincial economy, including the agricultural sector. Saskatchewan is awaiting a ruling on its reference case regarding the constitutionality of the federal carbon tax.
The provincial government acknowledges the issue with farm fuel purchases at Federated Co-op and understands it has been resolved with recent revisions to the federal legislation, which provides producers the ability to obtain an exemption from the Canada Revenue Agency (CRA). Details regarding how the federal carbon tax is applied to agricultural producers are available from CRA regional offices.
Dustin Duncan – Minister of Environment
Response From The Ministry of Agriculture:
April 15, 2019
Our Government is opposed to the federal carbon tax and is not involved in its implementation.
The federal government has exempt fuel used for farm purposes from the tax. Initially, the exemption only applied to fuel delivered to the farm leaving fuel purchased at cardlocks subject to the tax. However, the federal government's 2019 Budget noted that legislation would be amended to exempt fuel used for on-farm purposes that is purchased at cardlocks. Background information provided by the federal Department of Finance indicates that these changes are "deemed to come into force on April 1, 2019". Farmers will need to complete the Canada Revenue Agency form L402 E – Fuel Charge Exemption Certificate for Farmers – and provide the completed form to their fuel dealer in order to receive the exemption.
David Marit – Minister of Agriculture