To help Manitobans cope with the rising cost of living, the new Manitoba NDP government will remove the provincial fuel tax for six months, beginning Jan. 1.
The bill is part of the NDP government’s plan to deliver on its election promise to provide relief to Manitobans who are struggling with inflation.
The bill would eliminate the 14-cent-per-litre levy for vehicular fuel until June 30.
“This is the first step of our plan to bring in affordability measures for you,” said Premier Wab Kinew.
“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 suggested the suspension might be extended should the economy not settle.
He estimated that Manitobans could save about $250 on average during that time.
“Manitobans should have every reason to feel confident that when this legislation passes, they will be benefiting from that 14-cent-per-litre reduction,” said Sala.
He said the government is also looking at other measures to support Manitobans, such as increasing the minimum wage and expanding child care.
As for the Manitoba Progressive Conservative Party, they said they are studying the legislation at the moment.
The gas levy generates up to $340 million a year for the government, which is used for infrastructure and environmental projects.
Earlier this month, Kinew joined other provincial and territorial leaders in Halifax to discuss the federal government’s inconsistent approach to the carbon tax.
Kinew said all governments need to work together to fight climate change, but the federal carbon tax is not a feasible solution given the economic situation.
“The carbon tax is not a silver bullet… The reality is this during this inflationary moment. Right now, people are suffering,” said Kinew.
“We do think there should be similar consideration given to the people of Manitoba to get us through this period of economic pain.”
