Manitoba introduces bill to usher in gas-tax relief

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This article was published 23/11/2023 (659 days ago), so information in it may no longer be current.

The NDP government has introduced legislation to give Manitobans a gas tax holiday starting Jan. 1.

“This bill will provide much-needed relief to Manitobans during this unprecedented time of high inflation,” Finance Minister Adrien Sala told the house.

The Fuel Tax Amendment Act (Fuel Tax Holiday), known as Bill 3, removes the 14-cents-per-litre provincial tax on gasoline and diesel fuel used in motor vehicles, farm trucks and firefighting equipment.

The pause is expected to last six months but may be extended until the end of 2024, the bill says.

Suspending the gas tax will save the average family that operates two vehicles $250 over six months and cost the provincial treasury $163 million, Sala said.

The gas tax holiday, he said, “is a crucial step in our government’s plan to make life more affordable for all Manitobans” and starts in the new year if the opposition Progressive Conservatives support the bill so it passes before the legislative assembly rises Dec. 7.

The Tories declined to comment Thursday, saying they needed to first examine the bill.

Premier Wab Kinew said Manitobans who don’t drive should also benefit from the suspension of the gas tax.

“Grocery stores have told us persistently that transportation costs are one of the reasons they’re raising prices on you, the consumers. We’re calling their bluff here today,” the premier said. “We’re cutting transportation costs for them. I would hope those grocery chains pass on the savings to you.”

The finance minister was asked if he was concerned that oil companies may just jack up the price at the pump in response to the gas tax being suspended.

“What we know from other jurisdictions, where this type of legislation has passed, is these savings are passed onto consumers,” Sala said.

The governments of Alberta, Ontario and Newfoundland and Labrador have cut gas taxes and that has achieved more than just saving drivers money, said Kinew.

“Not only were the savings realized by the consumer but it actually reduced provincial inflation rates in some jurisdictions,” the premier said.

The Canadian Taxpayers Federation applauded the measure.

“This is great news for Manitoba taxpayers,” said Gage Haubrich, the federation’s prairie director.

“This is great news for Manitoba taxpayers”–Gage Haubrich

“Making gas more affordable makes it easier for Manitoba families to get to work, drive to the grocery store and take their kids to hockey practice,” Haubrich said.

Others were less than impressed by the NDP government addressing affordability issues by making it cheaper to burn fossil fuels.

“Manitoba needs a government-led approach that addresses the affordability crisis while also looking at decreasing long-term economic and health challenges associated with a lack of climate action,” said Manitoba’s Climate Action Team spokesperson Bethany Daman.

There are significant long-term costs associated with extreme weather events that occur as a result of burning fossil fuels, Daman said in a prepared statement Thursday. Policies linked to increased fossil fuel use are connected to increased costs associated with extreme weather events, she said.

“Flooding, tornadoes, and fires result in significant societal and infrastructure costs, and extreme heat and wildfire smoke result in increased health care costs,” Daman said.

The NDP government said the legislation aims to provide immediate relief.

“We know for years Manitobans have been struggling under high inflation and a government that wasn’t willing to take action to reduce their cost of living,” Sala said.

“We know for years Manitobans have been struggling under high inflation and a government that wasn’t willing to take action to reduce their cost of living”–Adrien Sala

“This is great news for families, for working people, for people in our rural communities that have to rely on their vehicles to get around a lot and it’s great news for small businesses that rely on vehicles,” said Sala.

“I’m really proud to tell you, the people of Manitoba, that our government has brought in a bill to save you money,” Kinew said. “That means if you drive an F-150, it will be $14 every time you visit the pump.” He urged the PCs to support the legislation so it can pass it before house rises Dec. 7 and take effect Jan. 1.

If it passes, the finance minister will decide after six months to extend the tax holiday or to gradually reimpose the provincial gas tax.

If affordability issues persist after the bill expires Dec. 31, 2024, “our government is going to take more steps to save you money,” Kinew said.

carol.sanders@freepress.mb.ca