Some Canadian farmers now exempt from fuel charges

March 21, 2019

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The Greenhouse Gas Pollution Pricing Act (GHGPPA) established a federal standard for reducing carbon pollution. Effective April 2019, this pricing system will add a charge to everyday fuels delivered for air, marine, rail, and road use.

Farmers in Ontario, Manitoba, Saskatchewan, New Brunswick, Yukon and Nunavut are eligible for an exemption from the charge for fuels used in tractors, trucks, or other farm machinery. 

Per Canada Revenue Agency (CRA), eligible farming activity encompasses:

  • the operation of eligible farming machinery on a farm for the purposes of farming
  • the operation of eligible farming machinery for the purposes of going from a location at a farm to another location at a farm

Eligible farming machinery should be primarily used for the purposes of farming, as stated above. Such farming vehicles include tractors and farm trucks that are not licensed to be operated on public roads.

An exemption form is available through CRA here.

For more information, please feel free to contact us.