Farmers seek fuel tax break in P.E.I. budget
Last Updated: Wednesday, April 15, 2009 | 4:09 PM AT
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Despite a deficit expected to exceed $100 million, the P.E.I. Federation of Agriculture is hoping the P.E.I. government will find a way to help farmers in Thursday's budget.
'That would make a significant difference for a great number of farmers.' — Mike Nabuurs, P.E.I. Federation of Agriculture
Federation president Mike Nabuurs told CBC News Wednesday he knows times are tough, but he says farmers are hoping the province won't forget about their needs. In particular, farmers are hoping for access to capital through low interest loans, and for tax-free fuel for farm-plated trucks.
"When produce is hauled from the field to the warehouse, or to storage, most of that takes place using farm-plated trucks," said Nabuurs.
"Those are trucks larger than three-quarter ton. And a large portion of fuel cost is used in those trucks and that is taxable fuel. So we're asking that that fuel be considered as tax-free for farmers, and that would make a significant difference for a great number of farmers on P.E.I."
Every province west of Ontario offers the program to its farmers, said Nabuurs. He estimated the cost to the provincial government would be about half a million dollars a year, and noted farmers would reinvest that into the local economy.
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