The Federation of Northern Ontario Municipalities (FONOM) wants the Ontario government to take a stand on the tax exemption for coloured fuel.
The northeastern Ontario municipal group issued a release expressing concern over comments made to the media by the province’s new environmental commissioner, Dianne Saxe, who suggests farmers are receiving an unfair tax break on the industrial fuel.
In a Toronto newspaper article, Saxe mentioned a provincial budget item suggesting that coloured fuel represents a $190-million annual subsidy, which she claims, goes to large corporations and “the better off.”
The fuel, which is dyed red for easily identifiable use, is utilized in farm, forestry and mining machinery, and is exempt from Ontario fuel taxes.
FONOM said any changes to the way coloured fuel is taxed “will have profound implications” on industry.
“We are consistently hearing from industries operating in Northern Ontario that the electricity prices are too high which is making them uncompetitive,” said Kapuskasing Mayor and FONOM president Alan Spacek in a news release. “At a time where the mining sector is struggling and forestry and farming face continuous pressure, this would only hinder their ability to be competitive.
“We are calling on the government to take a position on this issue and commit to safeguarding our industries.”
