Federal bill exempting farm vehicles from carbon tax applauded by P.E.I. farmers

P.E.I.'s Federation of Agriculture is applauding a federal private member's bill that would exempt farmers from paying the carbon tax on gasoline, diesel fuel, propane and natural gas.

The bill seeks to amend the Greenhouse Gas Pollution Pricing Act. It was tabled earlier this month by Conservative backbencher Philip Lawrence.

"We are certainly very supportive of something that's going to exempt farmers from paying the carbon tax," said Robert Godfrey, the federation's executive director.

"It's been an issue of ours here at Federation of Agriculture for some time, and resulted in some resolutions in the past, actually calling for the exemption for farmers, so we're very supportive of it."

In P.E.I., marked fuel — fuel dyed to distinguish that it is for a special purpose — is exempt from tax. It's currently allowed in tractors, combines and fishing fleets. But Godfrey said farmers have been fighting for years to see that exemption extended to all farm-plated vehicles.

"You've got dump trucks, you've got tandems, you've got single-axle vehicles that are only turned on because they're going to work," said Godfrey.

"You're not taking the kids to soccer practice or going to get groceries with a tandem truck. So we've asked repeatedly for this exemption, even before the carbon tax came into existence, that marked fuel should be allowed to be burned in these in these farm-plated vehicles."

2019 provincial election promise

Last spring, during the 2019 election campaign, the PCs pledged to allow all farm-plated vehicles to burn marked fuel — giving hope to Island farmers for some added economic relief.

"We're talking about a difference of 23 cents per litre between clear diesel and marked diesel," said Godfrey. "That's a pretty substantial amount after it adds up in the run of a year, when you think of how much fuel farmers end up burning, just putting in or taking out a crop — so we are really hoping that this exemption comes through."

He said the federation will continue to lobby for that exemption — and hopes that election commitment will be part of the next provincial budget, expected in April.

Officials with the province say all are looking at ways to implement campaign commitments.

"With respect to marked fuel for farm-plated vehicles, we are actively looking at ways in which we can work together across several departments to implement, but no timeline has been determined," they wrote in an email to CBC News, adding it would be premature to comment on any specifics until the budget is presented this spring.

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