Released on November 8, 2000
Effective January 1, 2001 farmers will be able to buy bulk gasoline and propanetax-free.
When combined with the existing exemption on marked diesel fuel for farm use,
this effectively eliminates provincial taxation on farm fuel.
Finance Minister Eric Cline said the change follows up on elimination of the
cap on the Farm Fuel Rebate Program announced in this year's budget.
"In the past, farm-use gasoline was taxable, but the government provided an
annual rebate of up to $900 for tax paid. 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. This change will increase their
exemption from $35 to $44 million.
Agriculture Minister Clay Serby said this latest measure makes it that much
simpler for farmers to access the benefits of tax-free fuel.
"Farmers will now save an estimated $44 million a year on their gasoline costs,
in addition to the $90 million a year through the exemption on marked diesel
fuel for farm use. When combined with other measures such as the Sales Tax
exemptions on farm machinery and repairs and agricultural chemicals, the
various tax exemptions save Saskatchewan farmers more than $270 million a year
in input costs."
To qualify for the fuel tax exemption, an individual must have a Fuel Tax
Exemption Permit issued by the Farm Fuel Program and must provide the tax
exemption number to the bulk fuel dealer when making a purchase. Information
on how to obtain and use a permit can be obtained by contacting 1-800-667-7587.
The new system applies only to bulk fuel purchases. Tax will continue to be
paid on gas purchased at retail outlets. However, farmers can apply for a
rebate on retail purchases for farm use at the end of each calendar year.
"This year's budget promised simpler, fairer, more competitive taxation. We've
already seen the Flat Tax cut in half July 1st, and the first payments
processed under the new Sales Tax Credit. Today's announcement is one more
step toward this goal," Cline said.
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For more information, contact:
Sandra Lodoen Hal Cushon
Saskatchewan Finance Saskatchewan Agriculture & Food
Regina Regina
Phone: (306) 787-6578 Phone: (306) 787-5961