The diesel rebate is thought of as a subsidy for farmers. Largely it is, but much of the subsidy is a removal of the taxes which support the road infrastructure. A farmer driving a tractor around their farm is not using road infrastructure, and there is little justification in making him pay tax to support it.

In the future, as better user pays systems can be used for road building and maintenance, taxes on fuel can be lowered, and the diesel rebate can be eliminated.