Nunavut government cancels fuel tax rebate program

The Government of Nunavut has cancelled its Fuel Tax Rebate Program.

The government made the announcement in a news release Tuesday, sayingany eligible products purchased or brought into the territory and used before May 14, 2018 must be claimed within one year of purchase.

In the 2018-2019 budget address, Finance Minister David Akeeagok said to continue adding new programs and initiatives the territorial government must look at reducing costs, raising revenues and eliminating other programs.

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"Our government will continue to identify and cancel programs such as the fuel tax rebate that are no longer effective or relevant to ensure that we operate in a fiscally responsible manner and better the needs of Nunavummiut," he said

The program aimed to reduce fuel costs associated with hunting, fishing and outfitting and to promote investments in mining by reducing operating costs.

A summary reportfor the program, tabled in the Legislature in March 2017, said most of the almost $23 million rebated through the program since 2006 went to mining firms. Only 0.19 per cent accounted for traditional activities, while mining companies received the remaining 99.81 per cent.

The report also noted that uptake of the program remained low for firms and individuals engaged in traditional activities.

• Nunavut harvesters getting less than 1 per cent of fuel tax rebates, while rest goes to mines

The territorial government said it continues to support active harvesters through the Department of Environment's enhanced harvester support programs.

TheDepartment of Economic Development and Transportation will also receive $3.3 million over three years to assist mineral exploration companies. The new Community Engagement Support Program for mineral exploration will be rolled out later this year.

To be eligible for the rebate, the petroleum products must have been taxed under the Petroleum Products Tax Act.

Application forms are available through the Department of Finance website or by contacting 1-800-316-3324 or petroleumtax@gov.nu.ca.