Agriculture and Forestry Minister Mitch Murphy today announced that the provincial government will be providing a rebate of provincial sales tax for building supplies used in the construction of farm structures with environmental benefits. The rebate is effective immediately.
"The rebate is being provided at the request of the Federation of Agriculture and will help reduce construction costs for producers," said Mr. Murphy. "It is aimed at further supporting producers to make their operations more productive and sustainable, and is an important new component of the provincial Sustainable Resources Policy."
Farm structures eligible for rebates are those used for the storage and handling of manure, pesticides, petroleum, fertilizer, and milk house waste; containment structures for silage and greenhouse spills; structures used for composting; and feedlot and livestock yards. Building supplies considered for rebate for eligible structures are lumber, concrete, steel, hardware, electrical and plumbing supplies, petroleum tanks and pumps and septic tanks. Projects must be pre-approved by the department.
This is the final outstanding tax reform proposal put forward by the Federation of Agriculture. The issue was brought forward at its last annual meeting and forwarded to the departments of Provincial Treasury and Agriculture for consideration. "The Federation is pleased with this decision; said Robert MacDonald, president of the Federation. "The implementation of this initiative is a good example of industry and government working together to effect positive change for Island producers."
Applicants must be registered producers with a valid Revenue Tax Exemption Permit, have completed an Environmental Farm Plan and in, or becoming in, compliance with environmental legislation and guidelines.
Mr. Murphy said the program recognizes that farm structures which protect the environment provide benefits beyond the farm gate to all Islanders. The goal is to reduce the risk of water contamination from agricultural practices.