Farmers’ cardlock fuel may not be carbon tax exempt: APAS

The Agricultural Producers Association of Saskatchewan (APAS) is asking the federal government to review the carbon tax’s farm fuel exemption, after discovering a potential problem in the legislation.

APAS president Todd Lewis says the legislation currently doesn’t apply carbon tax to fuel delivered to farmers’ yards. However, he said producers who fill up at cardlocks would still be taxed.

“It’s counter-productive to be decreasing carbon when you’ve got fuel trucks running up and down the roads delivering fuel,” Lewis explained.

With many producers facing hundreds of dollars in extra fuel expenses, Lewis said the tax exemption needs to be fixed before spring seeding, if not by the end of this month.

“It’s another situation where it seems the people putting the tax in place are really out of touch with what actually happens on the ground here in rural Saskatchewan,” Lewis said.

On Friday, federal finance minister Bill Morneau tweeted on the issue.

“Our government’s policy is to exempt gasoline and diesel used on farms from the federal price on pollution. We are examining the cardlock issue and looking to find a solution,” Morneau wrote.

Lewis said he’s glad the federal government is aware of farmers’ concerns.

“I think they understand that it is an issue, so at least we’re getting some traction there,” he said. “Now, let’s just see if they can do anything about it.”

The carbon tax kicks in April 1.