In early March, the CPA sent a letter to the New Brunswick Minister of Finance, the Honorable Ernie Steeves regarding members’ concerns on several issues. These issues included the taxation on propane for the purpose of cremation and the tax treatment of propane regarding product loss.
In New Brunswick, unlike Nova Scotia and PEI, “cremation” is not a valid exception under the Gasoline & Motive Fuel Tax Act. By way of explanation, if there is not a separate tank solely for use by the crematorium, then all propane sales must be taxable. If the commercial property has two separate tanks, one for the heating and lighting and one for cremation, then the Provincial Sales tax applies to the propane being used for cremation.
The CPA believes that propane used for cremation should be exempt under the Gasoline & Motor Fuel Tax Act, especially considering other provinces in Atlantic Canada are not applying a provincial tax on cremation.
The tax treatment of propane regarding product loss is also an important issue for CPA members. The regulations state the collector should pay a penalty for the propane they lose. However, propane is unique in that there is always product loss in the form of vapor every time you connect and disconnect your equipment. The CPA believes the issue of product loss as it pertains to propane should be reviewed to reflect the unique circumstances around the dispensing of propane.
The CPA has requested a meeting with the Minister of Finance discuss these issues. For more information, please contact V.P. Regulatory Affairs & Safety, Robert Loenhart at robertloenhart@propane.ca.