An Investment in Nova Scotia's Industries

• Every year, more than 5,800 businesses in Nova Scotia receive the fuel tax exemption.
   
• An estimated $25 million in tax savings is passed on to farmers, fishers and other qualified consumers every year.
   
• In December 1999, regulations were passed under the Revenue Act to require all Consumer Exemption Permits to expire within three years of issue. This was a recommendation of a review lead by the business community to bring a consistent renewal cycle to all permit expirations (Licence, Permits and Approvals Task Force).
   
• The fee structure for the Consumer Exemption Permit is $81.62, renewable every three years. Permits will be converted on a staggered time line and a pro-rated fee will be charged for the initial permit.
   
• All applicants who received authorization to purchase exempt (marked) fuel prior to April 1, 1996, are not required to pay the fee.
   
• Consistent with the recommendations of the LPA Task Force, revenue from this fee helps cover the cost of administering the program, including compliance features like inspections.
   
• There are three components to the program - the Consumer Exemption Permit, Administration, and Compliance. Fee revenues from all permits cover about one-third of the cost to offer the entire program.

• The Consumer Exemption Permit allows permit holders to acquire the fuel exemption at the point of sale, protecting cash flow by reducing up front expenses for the permit holder.
   
• Consumer Exemption Permit also reduces red tape by allowing permit holders to bypass paperwork associated with requesting a refund. The permit is not necessary to obtain the refund - those who qualify can save fuel receipts and apply for a refund within 15 months of the date of purchase, or when claims exceed $100.
    
• Administration includes processing the application, updating the database, and verification of exemptions at the wholesale level. 
   
• Compliance officers verify exempt (marked) fuel is being used properly - in equipment that qualifies for exemption. Officers conduct approximately 2,000 inspections per year to safeguard the integrity of the program.
   
• Monitoring the program ensures that the exemption remains in place and Nova Scotia taxpayers remain assured the program and tax system is protected.
   
• For more information, please call toll-free1-800-565-2336, or in Metro 424-6300.