April 11, 2019

With respect to that resolution, I would note that the Farm Fuel Program and the marked fuel program are intended to reduce fuel costs for farmers and other primary producers (commercial loggers, fishers and trappers). Marking fuel deters farmers from diverting farm fuel to diesel equipment used for ineligible activities (road work, commercial construction, etc.). It is a valuable tool, aiding Finance in its enforcement and compliance efforts. Extending this fuel tax exemption to municipalities, but not to other sectors for similar construction and maintenance activities, would cause inequalities between sectors, would be difficult to enforce and would also dramatically increase the cost of the program.

At this time, I feel that our Government has achieved a good balance between necessary changes to our revenue base and fairness to our taxpayers.

Now that we have achieved our goal of returning to fiscal balance, we want to ensure that this fiscal position is sustainable into the future, at which time we will be able to take a fresh look at our entire range of tax policies, to determine whether we might be able to provide some tax relief to our residents in areas where it is most needed and would have the greatest economic impact.

Donna Harpauer – Minister of Finance