For Release: April 1, 2005

NEW POINT-OF-SALE INITIATIVE TO HELP FARMERS
Farmer Identification Cards Will Exempt Purchase From Retail Sales Tax

GUELPH - The Ontario government is making it easier for farmers to claim their retail sales tax (RST) exemption when purchasing eligible farm-related goods, services and insurance for their businesses, Minister of Agriculture and Food Steve Peters said today.

Effective April 1, 2005, Ontario producers will be allowed to use their general farm organization identification cards in place of a purchase exemption certificate to obtain point-of-sale retail sales tax exemptions.

"The McGuinty government is acting on advice from general farm organizations and keeping a promise made in our last budget," said Peters. "The use of the farmer identification card simplifies the way farmers are able to obtain retail sales tax exemptions on eligible farm-related goods, services and insurance."

Today's announcement is the result of consultations between the Ontario Ministry of Agriculture and Food, the Ministry of Finance and general farm organizations, and complements the existing tax exemption system. Producers who are not members of one of the general farm organizations will still be able to use their existing purchase exemption certificate, or apply to the Ministry of Finance for a refund.

"We're proud of our commitment to Ontario's farmers," Finance Minister Greg Sorbara said. "Minister Peters has done, and continues to do, an excellent job of ensuring that their voices are heard in our deliberations."

Information notices will be sent to retailers and all producers registered with the Farm Business Registration program.

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Contact:
Dave McLeod
Communications Branch
416-326-3029
416-420-5631 (Mobile)