News FONOM asking province to protect Northern industries by keeping a tax exemption for coloured fuel SHARE ON: Taylor Ablett, staff Wednesday, Jan. 27th, 2016 Photo: Supplied by Taylor Ablett. Cutting a tax exemption for coloured fuel is going to impact a lot of Northern industries in a negative way. That is the message the Federation of Northern Ontario Municipalities is sending to the province. Right now, the exemption is subsidized by $190 million a year. Environment Commissioner Dianne Saxe is saying that money goes to the well off, suggesting the province ends the exemption. But FONOM says this is only going to hurt businesses that already have high electricity prices. The coloured fuel has red dye added to it, and is used by mining, forestry, and farming industries to run heavy equipment.