Saskatchewan farmers will not pay provincial tax on farm fuel as of Jan. 1, 2001.
The provincial government has announced that gasoline and propane purchased for farm use will be tax-free at bulk-sales pumps.
Previously, farmers paid the tax and applied for a rebate of up to $900 per year. That rebate cap was eliminated in the budget last March.
“Removal of the cap leaves an additional $9 million a year in farmers’ pockets and this latest measure takes the paperwork off their hands as well,” said finance minister Eric Cline in a news release.
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A finance department spokesperson said farmers who were already receiving the rebate will use their rebate program number as an exemption number.
They must provide it to their bulk fuel dealers when they make purchases.
Big savings
Agriculture minister Clay Serby said farmers will save $44 million on gasoline and propane costs. Colored diesel is already tax-exempt, which saves farmers $90 million per year.
Farmers who buy fuel at retail outlets will still have to pay the tax. However, if it is bought for farm use they can apply for a rebate at the end of each year.
Farmers who don’t have an exemption permit and number should call 800-667-7587 for more information.
