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FARM FUEL TAX BREAK TAKES EFFECT

Released on January 4, 2001

Saskatchewan farmers can now buy their farm gasoline and propane tax-free from

bulk fuel dealers. The change took effect January 1st.



"Changes to the Farm Fuel Program, including the removal of the $900 annual

rebate cap, will leave an additional $9 million in farmers' pockets," Finance

Minister Eric Cline said. "These changes, combined with other tax exemptions,

will save Saskatchewan farmers more than $270 million a year in input costs."



To take advantage of the program, farmers simply need to give their Fuel Tax

Exemption Permit number to their bulk fuel dealer when they buy the fuel. The

permit is issued by the Farm Fuel Program and is the same number farmers use to

purchase their marked diesel fuel tax-free. For information on how to obtain

and use a permit, call 1-800-667-7587.



Farmers may also buy their farm gas and propane from a retail outlet. However,

they will have to submit their receipts and apply for a tax refund on these

purchases at the end of each year.



Agriculture and Food Minister Clay Serby says the change gives farmers an

immediate advantage.



"This change simplifies the program for farmers, giving them access to tax-free

bulk gasoline when they buy it."



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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

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