Province introduces legislation to temporarily lower fuel taxes

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 today.

“We know there is an affordability crisis in Manitoba and across Canada,” said Sala. “This legislation would provide much-needed relief to Manitobans during these unprecedented times of high inflation. 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.”

Bill 3, 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. This tax pause would remain in place for six months. During the fuel tax holiday, the 14-cent fuel tax rates on gasoline and diesel used to operate motor vehicles will be eliminated, the minister noted.

“This would provide direct relief to Manitoba families struggling with rising costs and is a crucial step in our government’s plan to make life more affordable for all Manitobans,” said Sala.

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.