Gas tax holiday extension misses the mark

Fort Garry

Hey there, time traveller!
This article was published 06/11/2024 (313 days ago), so information in it may no longer be current.

As Manitobans struggle with rises in the cost of living, the current government’s decision to extend the gas tax holiday is more than just a misstep — it’s a costly distraction. This initiative, framed as a relief measure, overlooks the real issues confronting Manitobans and instead places an unnecessary burden on our future.

When the gas tax holiday was first introduced on January 1, 2024, gas prices dropped from $1.29 per litre to $1.15 per litre, only to climb back to $1.22 per litre by the end of January. Today they are up to $1.24 per litre. The savings were short-lived and these brief reductions provide minimal saving to families, as the average driver saves around $15 a month. Meanwhile, the government’s decision to extend this tax break has resulted in a $340 million financial burden that will require borrowing — further indebting our province and placing the burden on our children and grandchildren.

More concerning is how this tax holiday disproportionately benefits corporations and high-income earners, leaving working families without adequate support. Only 43 per cent of the gas tax revenue saved actually benefits families, while the remaining 57 per cent goes to corporations. The gas tax holiday is not designed to help those who need it most, and Manitobans are feeling the strain.

Rather than this temporary and inefficient measure, the $340 million could have been used to make real, meaningful changes. The Social Planning Council of Winnipeg has highlighted that these funds could lift 60 per cent of Manitoban families out of poverty. Instead of prioritizing gas tax breaks, the government could have invested in critical programs that support our communities.

For instance, redirecting these funds could’ve provided entirely free public transit to Winnipeg, Brandon, Thompson, and Selkirk. This would benefit those who don’t own cars — the very people left behind by the gas tax holiday. Additionally, addressing issues in education is imperative. Across Manitoba, schools are overcrowded, forcing children to learn in makeshift classrooms such as libraries and hallways. It costs approximately $40 million to build one school. We could build eight new schools with $340 million, alleviating overcrowding and providing students with the learning environments they deserve.

And what about our health-care system? Last month, health-care workers, including aides, laundry workers, and ward clerks among the lowest paid in Canada, came dangerously close to striking, reaching a tentative agreement just an hour and a half before the deadline. The government could have utilized this $340 million to pay these essential workers competitive wages, which would improve retention and recruitment, and reduce our reliance on expensive private staffing agencies. Our health-care system is in desperate need of support, and our government needs to prioritize these workers — not temporary tax breaks taken straight from the previous government’s playbook.

It’s time to rethink our priorities. The extension of the gas tax holiday does not offer the long-term solutions that Manitobans need. We must redirect these funds to initiatives that genuinely improve the lives of families. This government must stop using short-sighted measures for public relations and start investing in our future.

Manitobans deserve better.