Unmarked potential: Consulting on fuel tax rules

Alberta’s government is consulting marked fuel sellers and purchasers on a proposal to phase out marked fuel and move the tax exemption to clear fuel. The engagement will run from Aug. 1 to 31, and stakeholders can provide their views through an online survey. Recommendations based on stakeholder input will be provided to the government this fall for consideration.

Marked fuel is provided to eligible purchasers at a partially exempt tax rate of four cents per litre when vehicles are used for farming purposes or in unlicensed off-road equipment. This includes industries such as agriculture, oil and gas, and forestry.

While the fuel tax exemption rate will not be changed, some retailers have suggested that providing the tax exemption on clear fuel instead of marked fuel could provide savings for both fuel sellers and eligible consumers.

“We’re committed to supporting Alberta’s agricultural and resource sectors with practical, cost-saving solutions. This proposal could reduce red tape and put more money back into producers’ pockets. We are looking forward to hearing directly from industry through this engagement.”

Nate Horner, President of Treasury Board and Minister of Finance
 
"Alberta's government works to support producers by listening to their unique needs and opinions. We'll ensure this farm fuel tax break continues in a way that makes sense for those who need it most: the farmers and ranchers who work tirelessly to put food on tables across Alberta and around the globe.”

RJ Sigurdson, Minister of Agriculture and Irrigation
Alberta’s government is consulting with industry partners to cut red tape and improve cost savings for key industries by exploring a more efficient fuel tax exemption. Alberta’s producers deserve a simpler, more efficient system that boosts their bottom line. Alberta’s government is focused on removing barriers to support business growth and Alberta’s productive industries.