Manitoba considers extending fuel-tax holiday again

The government of Manitoba is considering extending the provincial fuel-tax cut beyond Sept. 30.

Premier Wab Kinew tells CityNews in an emailed statement the gas-tax holiday is a “policy we really believe in.”

“If we can help Manitobans, we’re always going to try and make that move, but we also need bear in mind the health care and education investments that need to be made, so it’s a bit of a balancing act,” Kinew said.

The nine-month suspension of the 14-cent-per-litre provincial fuel tax began Jan. 1 and was initially supposed to last six months. It was extended beyond the original June 30 deadline — adding July to September.

The fuel tax holiday was a major NDP campaign promise leading up to last October’s provincial election. The Kinew government then took out billboards and other advertisements to promote the cut once it came in effect.

“The gas tax holiday has been a really powerful tool to put some freedom back in the hands of the average Manitoban,” Kinew added. “Our summers are short so the fact that people are travelling and able to save a few dollars in order to spend time with their families has been really positive.”

71% of Manitobans want gas tax cut extended: poll

Many Manitobans have been calling for an extension of the tax cut, according to a Leger poll released Monday.

The poll, commissioned by the Canadian Taxpayers Federation, shows 71 per cent of respondents are supportive of extending the gas-tax holiday, while 15 per cent are opposed.

The poll also found that 68 per cent of respondents are in favour of making the gas tax holiday permanent, while 19 per cent oppose that idea.

“If you just have a minivan and a light-duty truck, you are a two-car family, you’ve probably saved almost $500 so far over the course of the cut,” said Gage Haubrich, the federation’s Prairie director. “And if the government extended it for another six months, you could save up to $720.”

But Molly McCracken, the director of the Canadian Centre for Policy Alternatives, feels the money the province is losing on the gas tax holiday could be better spent.

“Our roads are crumbling; our social services are underfunded,” McCracken said. “This is being done to keep our taxes low. We need to target our measures now with those affected most by the cost-of-living crisis, those on fixed incomes, low-income folks, seniors, single-parents.

“If you ask Manitobans if they wanted a free lunch they would probably say yes, but there is no such thing as a free lunch.”

In a poll commissioned by the Manitoba government in July, 14 per cent of respondents cited the fuel-tax holiday as the government’s top priority to make life more affordable.

Statistics Canada data from earlier this summer suggested the overall inflation rate in Manitoba was low in part due to the fuel tax suspension.

While Premier Kinew enjoys an approval rating that is the highest in the country for a provincial leader, his government still faces Manitoba’s mounting deficit – while trying to pay for the party’s election promises.

“It’s a very difficult decision the government has to make,” said Malcolm Bird, an associate professor of political science at the University of Winnipeg. “I don’t think this would make or break the government’s future. I still think this government is enjoying the last bits of a honeymoon period.”