Government of Saskatchewan
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      Friday, February 23, 2018

Program Description

Fuel Tax Exemption Permit holders (i.e. farmers, commercial fishers, trappers and loggers) may purchase 80% of their diesel tax exempt from registered bulk fuel dealers, cardlock or keylock operations for use in their farming, commercial fishing, trapping or logging activities. Propane is exempt from fuel tax when purchased with a valid Fuel Tax Exemption Permit for an allowable use, or when purchased for heating use, unless purchased through equipment used to dispense automotive propane.

Effective April 1, 2017, the partial Fuel Tax exemption for bulk purchases of gasoline is eliminated.  Fuel Tax Exemption Permit holders are required to pay the full fuel tax on gasoline purchases 

Fuel Tax Exemption Permit holders may also purchase marked diesel fuel and propane exempt of tax for use in their eligible farm and primary producing activities.

Clear diesel fuel or fuel purchased from a retail service station or gas bar is not eligible for a fuel tax refund.

Registered bulk fuel dealers, cardlock and keylock operators will receive a 12¢ per litre refund or tax credit representing the 80% exemption for eligible farm diesel sales reported through Saskatchewan Finance's automated up-front exemption system (AUFES).

Farmers and commercial fishers, trappers and loggers must complete a Farm Fuel Program Permit Renewal each year to renew their Fuel Tax Exemption Permit.

Eligible Farmer

Under the Farm Fuel Program, an eligible farmer is a person who owns or rents land, controls and is responsible for the operation of a farm and meets at least one of the following criteria:

  • The person must own or rent at least 75 acres (30 hectares) of cultivated land in Saskatchewan, that is used for the growing of cereal crops; or
  • The person received gross annual revenue of at least $10,000 from the sale of primary farm products that he or she produced in Saskatchewan.

A person may also qualify as a farmer if he or she is a member or shareholder in a farm organization, such as an agricultural corporation, farm partnership, a farm co-operative, or a farm colony, and contributed substantially to the agricultural production of that farm organization.

Related Links
Bulk fuel dealers are able to verify Fuel Tax Exemption Permits, report and view tax free fuel sales.

Saskatchewan Finance is committed to providing convenient electronic service options - you can find our electronic tax services here. 

All of our forms in one convenient location.

Tax information on fuel and tobacco purchases for Status Indians on reserves. 

This program helps Saskatchewan service station owners stationed near the Alberta and Manitoba borders.

Carriers operating in Saskatchewan are required to pay tax on the fuel consumed in the Province. This is done under the provisions of the International Fuel tax Agreement (IFTA).

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