Recent comments by Ontario’s Environmental Commissioner have raised concerns in rural and northern Ontario about the possibility of changes to Ontario’s road tax exemption
NEWS RELEASE
GROWING ONTARIO
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Recent comments by Ontario’s Environmental Commissioner and subsequent clarifications have raised concerns in rural and northern Ontario about the possibility of changes to Ontario’s road tax exemption for non-road users.
Under current provincial rules, diesel operated farm, forestry, mining and other resource sector equipment that does not operate on the Province’s public roads is exempt from paying fuel taxes that are meant to preserve those roads.
Environmental Commissioner Dianne Saxe has suggested that this amounts to a ‘subsidy’ of $215 million dollars that mostly benefits the rich and those who burn more fossil fuel.
Growing Ontario, a coalition spearheaded by Grain Farmers of Ontario, the Federation of Northern Ontario Municipalities, the Northwestern Ontario Municipal Association and supported by the Rural Ontario Municipal Association is calling on the Legislative Assembly to clarify that it supports the off-road fuel tax exemptions.
“Municipal leaders know better than many how expensive it is to repair roads. We believe the province has struck the right balance here by including dedicated taxes to road maintenance in fuel taxes for road users and exempting fuel used off road from paying those taxes.” Said Mayor Al Spacek, President of the Federation of Northern Ontario Municipalities and Mayor of Kapuskasing.
“To suggest farmers are somehow benefitting improperly from the burning of fossil fuels is unfair. Diesel operated machinery is a reality of farming and the only way farmers are able to maintain our global food supply. Making diesel fuel more expensive will not discourage the use of diesel on farms, it will simply increase the cost of food for Ontarians, who are already feeling the impacts of a low dollar.” Said Barry Senft, CEO of Grain Farmers of Ontario.
Growing Ontario is calling on the Legislative Assembly to take up this issue in the spring session and affirm support for the off road fuel tax exemption.
Growing Ontario would like MPPs to recognize that, in addition to the basic fairness that drove the original decision to exempt off road users from paying road taxes, having a strong agriculture and forestry sector requires sensible action and support from the provincial government.
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