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QUEEN’S PARK – Ernie Hardeman, MPP for Oxford and critic for Agriculture, Food and Rural Affairs, today asked the Minister of Agriculture to guarantee that point of sale exemptions on sales tax will continue on farm equipment and supplies. “Farmers fought for years for a point of sale exemption, so when they buy their farm equipment and supplies they show their farm organization card and don’t pay the tax,” said Hardeman. “Can you guarantee that under the Dalton McGuinty harmonization tax grab farmers will continue to get a point of sale exemption?” Despite the fact that the budget announcing the harmonization was tabled almost a week ago and the federal agreement on harmonization was signed over three weeks ago, after months of negotiation, the Minister of Agriculture said that they are still “confirming” the treatment of farm equipment. Hardeman pointed out that there were a number of points of sale exemptions included in the budget, but there was no exemption for agriculture. Currently, there is a point of sale provincial retail tax exemption for farm equipment, farm tools and farm machinery that are to be used by a person engaged in the business of farming, as well as building supplies and materials used to build, repair or modernize structures used exclusively for farm purposes. Farmers show their card from Ontario Federation of Agriculture, Christian Farmers Federation of Ontario or the National Farmer’s Union and are not charged PST. “Now farmers will have to pay the tax and then wait – months or maybe even a year – for the government to give them their own money back,” said Hardeman. “Many will have to increase their borrowing to cover that money.” - 30 -
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