Gas tax holiday not for all Manitobans, Tories argue

Hey there, time traveller!
This article was published 27/11/2023 (689 days ago), so information in it may no longer be current.

A proposed fuel tax holiday won’t discriminate between gas used in snowmobiles, boats, farm tractors or cars, Finance Minister Adrien Sala insisted Monday, as the Tories cried foul over the NDP’s bill to pause the 14-cent-per-litre levy.

The government’s Bill 3 — the Fuel Tax Amendment Act — is full of holes, the Opposition Progressive Conservatives charged in question period, claiming farmers, tourists and recreational vehicle users will not reap the benefits.

If passed, the bill would temporarily pause the tax on gas, diesel and natural gas used in vehicles.

“All Manitobans will benefit from the reduction of fuel tax from 14 cents a litre, to zero,” Sala said.

Finance critic Obby Khan demanded the NDP government ensure savings apply to all gasoline and diesel purchased in Manitoba — whether for use in a passenger vehicle, snowmobile or farm equipment.

“This tax fuel cut is not for all Manitobans,” Khan said.

The proposed legislation states consumers will not be charged the tax on fuel used to operate a motor vehicle on a roadway, for vehicles registered as a farm truck or for firefighting equipment, effective Jan. 1.

That’s cause for concern and confusion, natural resources critic Rick Wowchuk said.

“Has the (minister of natural resources) consulted and advised trappers and commercial fishers that their snowmobiles, power saws, augers, bombardiers, jerry cans — which is their lifeline to return home to their families at night — do not qualify for this tax exemption?” Wowchuk said.

Tory agriculture critic Jeff Bereza tabled a letter from the Keystone Agricultural Producers, Manitoba Pork, Manitoba Beef Producers and the Canadian Propane Association to Sala requesting that propane and dyed gas be included in the tax holiday.

Manitoba charges a three-cent-per-litre levy on marked gasoline used for farm vehicles.

“The incorporation of propane and dyed gas would provide substantial benefits for Manitobans, particularly farmers, aligning with the bill’s intended objectives of delivering savings and advantages,” the letter from the four organizations states.

“With farmers trying to understand why they are not part of the (fuel tax) amendment act, and also being burdened by the NDP supporting the carbon tax federally, will this government admit rural Manitobans will continue to be ignored?” Bereza asked.

Farmers will be able to purchase clear diesel and gasoline for use in their vehicles and enjoy the full, temporary tax holiday, Premier Wab Kinew said.

“There will not be a need to mark fuel once we bring in the fuel tax holiday,” Kinew said. “This is a step that the PCs never took. They charged 14 cents a litre on these Manitobans.”

Speaking to reporters after question period, Sala said all clear gasoline and diesel purchased in Manitoba will be temporarily exempt from the provincial tax, regardless of how or where it is used. Municipalities, tourists, boaters, snowmobilers and all other users will benefit.

“If you pull up to a pump, anywhere in Manitoba, once this bill is enacted… you will receive that 14 cents off for every litre,” Sala said.

Sala said he appreciated the feedback from KAP and others, but amendments to the bill are not being contemplated.

“At this point, we know that the bill as structured brings those savings to Manitobans in every corner of the province,” he said.

Extending the fuel tax holiday to propane-powered vehicles would have been too complicated, as the gas is also used for other purposes, including heating, the minister said.

The bill was called to committee on Monday and members of the public can register to present on the proposed legislation Wednesday at 6 p.m.

danielle.dasilva@freepress.mb.ca