Finance Minister Adrien Sala announced Thursday that the province is introducing amendments to the fuel tax act, which would temporarily pause the provincial tax collection on gasoline for at least six months starting next year.
"We know there is an affordability crisis in Manitoba and across Canada," says 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."
As per the press release from the government, 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. The minister explains that the 14-cent fuel tax rates on gasoline and diesel used to operate motor vehicles will be eliminated during the fuel tax holiday.
"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," says Sala.
The minister adds that fuel taxes would continue to be collected on aviation, locomotive and propane as these are not included in the fuel tax holiday.
According to the province, the average Manitoba family with two cars will save approximately $250 during the six-month fuel tax holiday.
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