The Manitoba government is introducing 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, Finance Minister Adrien Sala announced last Thursday.
According to Sala, the current situation in Manitoba and throughout Canada is one of affordability crisis. Therefore, this proposed legislation aims to offer crucial assistance to Manitobans, specifically during these exceptional times of significant inflation. It would benefit various individuals, ranging from families with busy schedules to small business owners who heavily rely on their vehicles for work.
The proposed Bill 3, also known as the fuel tax amendment act or the fuel tax holiday, aims to provide a temporary reduction of the provincial fuel tax rate to zero cents per litre on gasoline, natural gas and diesel fuels for road use. This proposed tax pause is set to remain in effect for six months. As stated by the minister, this period will see the elimination of the current 14-cent fuel tax rates on gasoline and diesel used for operating motor vehicles.
According to Sala, this would offer immediate assistance to Manitoba families facing financial difficulties due to increasing expenses and is an essential part of our government’s efforts to enhance affordability for all residents of Manitoba.
There is no provincial sales tax on the purchase of fuel. Fuel taxes would continue to be collected on aviation, locomotive and propane as these are not included in the fuel tax holiday, the minister added.
The average Manitoba family with two cars is expected to save approximately $250 during the six-month fuel tax holiday, the minister noted.
