Manitoba extends fuel tax holiday 3 months

The Manitoba government is extending its temporary cut to the provincial fuel tax until the end of September, three months later than planned, a government spokesperson has told CBC News.

The cut, which removed the 14-cent tax on a litre of fuel, kicked in Jan. 1 and was intended to last until the end of June, with an option to extend it for the duration of the year.

The extension comes a day after the federal government's carbon tax increase came into effect, costing drivers an extra 3.3 cents a litre. The Manitoba government confirmed last week it intends to ask Ottawa to remove the carbon tax from the province.

The NDP promised to introduce the gas-tax break legislation — introduced as Bill 3 in late November and passed days later — during its election campaign as a way to help people with rising costs.

In March, Premier Wab Kinew boasted that the province had the lowest fuel prices in the country.

He's also said he won't let the tax get as high as it was under the former Manitoba Progressive Conservative government. The gas tax was increased under the NDP government in 2012 to the current 14 cents a litre from 11.5 cents. 

Kinew will table his first provincial budget Tuesday afternoon. The NDP has signalled its budget will include changes to education tax rebates in 2025, plans to make prescription birth control free, and rebates on electric vehicles.

The fuel tax brings in roughly $340 million a year for the province.