Carbon tax exemption may not apply to cardlock fuels

Saskatchewan’s general farm organization is calling on the federal ministers of finance and environment to make immediate changes to how farm fuels are treated under the Greenhouse Gas Pricing Act that comes into effect in Saskatchewan April 1.

Fuel used on the farm is supposed to be exempt from the federal carbon tax. However, in a March 6 news release, the Agricultural Producers Association of Saskatchewan said farm fuels purchased at cardlock locations may not qualify for the exemption.

“It is our understanding that farm fuel not delivered to the farm, but picked up at cardlocks across Saskatchewan, is not included in this exemption,” said APAS President Todd Lewis.

Lewis said he learned of the loophole while attending the Canadian Federation of Agriculture’s annual general meeting last week in Ottawa.

Delegates at the meeting heard that the Canada Revenue Agency is aware of the issue and is looking at what needs to be done to address it. However, the carbon tax will be applied to cardlock fuel until a solution is found.

APAS is writing the ministers responsible and asking for immediate changes before the carbon tax is imposed April 1.

“With only a few weeks before spring seeding, we have producers phoning our office and asking if they need to be buying additional tanks to store their fuel on farm,” Lewis said.

“It makes absolutely no sense for an exemption to cost producers more money or for legislation designed to reduce carbon to be forcing delivery trucks up and down Saskatchewan roads.”

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