Tories flip-flop on gas tax after being booted from government

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This article was published 29/11/2023 (732 days ago), so information in it may no longer be current.

The Opposition Progressive Conservatives, who rejected a fuel tax holiday while they were in government, are demanding the NDP abolish the provincial tariff outright.

On Wednesday, finance critic Obby Khan urged the government to amend a proposed bill that would temporarily pause the 14 cent per litre tax on clear gas and diesel.

“We are asking for permanent tax relief from gas taxes. We’re asking that all fuels be exempt,” Khan said.

The governing NDP has billed the temporary tax holiday as a far-reaching and inclusive measure to provide immediate relief to Manitobans struggling with the cost of living.

If passed, the fuel tax holiday would kick in on Jan. 1 and run for six months, at which time it would be evaluated, and could be extended another six months.

While in government, the Tories dismissed calls to pause the tax amid rising inflation; Khan said the PCs chose to support other affordability policies, including sending cheques to Manitobans, instead.

In question period, the opposition argued the government should get rid of the provincial fuel tax on transportation, including the three cent per litre levy on dyed gas that’s used in farm operations.

The NDP countered by criticizing the PCs for not giving Manitobans a gas tax holiday during their seven years in government.

However, calls to amend the bill have also been echoed by agriculture and outdoor recreation organizations.

Yvonne Rideout is the director of Snoman, a non-profit organization representing over 50 snowmobile clubs in the province.

She said snowmobilers and the volunteers who maintain the province’s trails will not get a tax holiday if the bill is passed without changes.

“We want to see this applied to off-road vehicles as well, specifically snowmobiles, as well as our grooming equipment that we have on the trails,” Rideout said.

The proposed legislation says the tax holiday only applies to fuel purchased for use in a motor vehicle on a roadway, a vehicle registered as a farm truck, or firefighting equipment.

By including the word “roadway” in the bill, snowmobile riders and other off-road trail users are excluded, Rideout said.

“Why not amend the bill so that it applies to all vehicles, as opposed to just on-road vehicles,” Rideout said.

“We heard in the NDP campaign and in the throne speech about inclusiveness and this is one way that the NDP can show that.”

While supportive of the bill, farmers also need specific consideration, according to the Keystone Agricultural Producers.

The bill would not lift the three-cent per litre tax on dyed gas used for farm purposes, according to the provincial advocacy group.

“Fuel costs for farmers are incredibly high and any support to farmers to help reduce costs has a direct impact on their bottom line,” KAP general manager Brenna Mahoney said in a statement.

Asking farmers to instead use clear gasoline sold at the average pump could create supply challenges, Mahoney said.

Large farm vehicles that would typically refuel elsewhere may also cause delays at pumps mostly patronized by passenger vehicles, she added.

“By including the dyed gas in Bill 3, it would send a direct signal to farmers that affordability for them is a priority for the government of Manitoba and would ensure farmers receive savings on their use of bulk fuels,” Mahoney said.

Finance Minister Adrien Sala emphasized the fuel tax holiday is intended to assist families with their expenses and is a balanced approach to lowering costs.

Over six months, the tax holiday is estimated to save the average, two-vehicle household about $250.

“If you pull up to a gas station with your truck or your car, no matter what corner of the province you live in, if you have a boat or a snowmobile behind you on a trailer, and you fill up you’re still going to obtain those same savings,” Sala said.

The government doesn’t intend to enforce parts of the legislation that may limit where discounted gas can be burned, he said.

“We will not be policing folks at the pump,” Sala said. “All Manitobans when they come to those gas stations where (they’re) selling clear fuel, will see those savings.”

danielle.dasilva@freepress.mb.ca