Farmers are lobbying the federal government to make sure they don’t have to pay its carbon tax when filling up at purple-fuel card locks.
Farm fuel is exempted from the tax that takes effect April 1, but as things stand farmers will have to pay when they use an agricultural fuel card lock, Keystone Agricultural Producer president Bill Campbell said in an interview.
“It just becomes a lot more of an ugly situation if we don’t get it right by the 1st of April,” he said.
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“There have been discussions with the minister of finance (Bill Morneau) and he’s well aware and he has committed to try and get it done, but whether government will work that fast is the next question. We’re hoping it will.”
The changes necessary might be in the March 19 federal budget, Campbell said at the time.
To qualify for the carbon tax exemption on farm-stored agricultural fuel farmers must fill out a special form their fuel dealer keeps to prove they are eligible, he said.
Part of the problem with card locks is that rules around farm fuel vary between provinces, he said.
“Some don’t have purple dye in their fuel,” Campbell said. “We’re dealing with provincial jurisdictions and it has become a bit more complicated to implement it. This is what happens when you don’t have consultations with the farming industry.”
