Winnipeg –
The Manitoba government introduced legislation Thursday that would extend the province’s fuel tax for six months, and potentially for more.
If passed, the bill would eliminate the 14 cents per liter tax on gasoline, diesel and natural gas used in motor vehicles from January 1st to June 30th. The Cabinet will also be given the power to extend tax breaks. It will probably be offered at a discounted rate for another 6 months.
“We know that working-class people in this province often drive,” Finance Minister Adrian Sala said Thursday.
“This legislation will help Manitobans in their daily lives. We are confident of that.”
The tax cut was promised by the NDP during the recent election campaign and is intended to help with the rising cost of living. According to Sarah, for an average household with two cars, he would save $250 over six months.
The tax cut has been criticized by some environmentalists and others, who say it primarily benefits people who drive large, gas-guzzling cars and does not encourage emissions reductions. .
Liberal MP Cindy Lamoureux said the tax cuts would do nothing for many low-income people.
“This just helps people who can afford to put gas in their cars,” Lamoureux said earlier this week.
Although there is no mechanism to ensure oil companies don’t raise prices and take some of the room created by tax cuts, Sala said he was confident motorists would receive the full savings at the pump.
“What we know from other jurisdictions that have passed these types of laws is that these savings will be passed on to consumers,” Sala said.
The Alberta government has suspended fuel taxes on gasoline and diesel in early 2023, and the tax suspension is expected to last until the end of the year.
Manitoba’s tax cuts will cost the province an estimated $163 million in revenue over six months.
The NDP government hopes to have the bill passed by Congress by December 7, the start of the winter break. The opposition Progressive Conservative Party said Thursday it was still considering the bill and would comment later.
This report by The Canadian Press was first published Nov. 23, 2023.
