Yesterday the provincial N.D.P. government introduced amendments to the fuel tax act, which would temporarily pause the collection of the provincial tax on gasoline for at least six months starting next year. If passed, the "holiday" would begin January 1st, 2024 and last for at least six months.
Premier Wab Kinew had promised the measure during his election campaign as a way to help people with the rising cost of living.
"This legislation would provide much-needed relief to Manitobans during these unprecedented times of high inflation," said Finance Minister Adrien Sala in a news release. "The bill would help everyone from the family rushing their kids off to different activities, to the small business owner who relies on their car for work."
The fuel tax amendment act (fuel tax holiday) would temporarily reduce the provincial fuel tax rate to zero cents per litre on gasoline, natural gas and diesel fuels for road use. During the fuel tax holiday, the 14-cent fuel tax rates on gasoline and diesel used to operate motor vehicles will be eliminated. There is no provincial sales tax on the purchase of fuel.
The government says the average Manitoba family with two cars is expected to save approximately $250 during the six-month pause. The fuel tax brings in about $340 million dollars a year to provincial coffers.
Fuel taxes would continue to be collected on aviation, locomotive and propane as these are not included in the fuel tax holiday.
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