Exemption from new fuel charge available for Ontario farmers

By Larry Davis

To The Haldimand Press

In a few short weeks, a new federal fuel surcharge comes into effect in Ontario. It’s part of the federal carbon pollution pricing system and there are implications for Ontario farmers.

The new fuel surcharge in Ontario will be added to fuel used for air, marine, rail, and road use. But Ontario farmers will be eligible for an exemption for some forms of fuel for tractors, trucks, and machinery used on the farm.

The exemption for Ontario farmers covers gasoline and light fuel oil and involves completing an official exemption form available from the Canada Revenue Agency.

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The Ontario Federation of Agriculture (OFA) believes the fuel tax exemption for farmers doesn’t go far enough. The taxation of inputs to food production is a regressive tax if it can be passed on to consumers. Or it is punitive to farmers if it cannot be passed on in the price of food.