QUESTION PERIOD — Agriculture and Agri-Food
Tax Policy
April 20, 2023
My question is for Senator Gold, the Government Representative here in our chamber.
Senator Gold, as we all know, Canadian farmers are the backbone of this country. As an advocate for farmers, processors and rural Canadians, I am particularly concerned about the many ongoing issues that continue to create undue hardship on the agriculture sector. Labour shortages, climate change, ever‑changing regulations and supply chain management are just a few.
These issues share one common value, though: increased financial burdens for farmers and their families. Farmers are price-takers, not price-makers. They must continue to compete at market value and often are forced to swallow the costs of decisions beyond their control, and that is why I rise today.
Senator Gold, competition in the market for our farmers is made more difficult by your government because they are charged a tax on a tax. Recently, I received a copy of an invoice from a local farmer in Guelph, Ontario. Trish and Dean Scott reached out to me about the rising costs they are facing on their farm due to being forced to pay taxes on a tax.
Colleagues, not only are they paying the federal excise tax on their diesel and the carbon tax on fuel oil, but they are also paying Harmonized Sales Tax, or HST, on both of these taxes. Let me be clear, this is a tax on a tax — or should I say, a tax on a tax on a tax.
Senator Gold, can you please update the chamber as to why farmers — and, indeed, all Canadians — are being taxed on tax by your government? Will you share with this chamber what the Canadian government is doing to remove their tax on a tax?
Thank you.
Thank you for your question and for raising the number of challenges that farmers in this country are facing.
I’m glad you mentioned climate change amongst them because, in fact, farmers are on the front lines in dealing with climate change, whether the issue is flooding or droughts or storms. In my own region of the province where I live, my friends who are maple syrup producers did not have the easiest time this year with the tapping of their trees as a result of climate change.
The government is focused on taking environmental action throughout the country while supporting the competitiveness of farmers, who feed Canadians and, indeed, the world. That’s why the government has done a number of things. They have already exempted gas and diesel for farm use from pollution pricing. They have created a rural top-up for rebates, directly returning proceeds collected in proportion to the amount collected via the price on pollution, which translates to $100 million returned to farmers in 2021-22 and $120 million in 2022-23. Over the last two years, the government has invested $1.5 billion in programs to support farmers to reduce their emissions on farms and grow their operations. This includes a $0.5-billion program to purchase cleaner equipment, such as more energy efficient grain dryers and barn heating systems.
I could go on, but I think this demonstrates this government’s commitment.
Again, as I said on many occasions in this chamber, we are doing the right thing by our planet, by our environment and, indeed, by our farmers — who are the victims of climate change as much as any of us — while at the same time, the government is doing its best to offset the impact of these necessary measures on those, like farmers, who are paying a price.
