NDP introduces bill to temporarily lift provincial gas tax starting in the new year

The Manitoba government has introduced a bill to temporarily lift the provincial tax on fuel starting Jan. 1, 2024. 

Premier Wab Kinew promised the measure during the recent election campaign as a way to help people with the rising cost of living. The bill proposes lifting the 14-cent-a-litre tax on gasoline, diesel and natural gas used in motor vehicles from Jan. 1 to the end of June.

"This is the first step of our plan to bring in affordability measures for you," Kinew said Thursday. "We are also going to bring fuel prices under the purview of the Public Utilities Board to be able to get through some of the market failures that we often see when it comes to gasoline prices." 

Finance Minister Adrien Sala has said the tax suspension could be extended if inflation remains high. He said the government is committed to the temporary lift for a six-month period, but it will be evaluated to decide on whether the government extends it and for how long. 

Sala also said Manitobans could save an estimated $250 over the six-month period if the bill is passed. That figure was calculated by the Department of Finance and is an estimate "of what the average family would save over a period of six months," he said. 

"Manitobans should have every reason to feel confident that when this legislation passes, they will be benefitting from that 14-cent-per-litre reduction," Sala said. 

The Manitoba Progressive Conservative Party said Thursday they need to read the bill before commenting on it. 

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

The NDP government is hoping to have the bill passed by the legislature before the winter break starts on Dec. 7.