HAUBRICH: The clock’s ticking on Manitoba’s fuel tax relief

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The end to the Manitoba government’s 14 cents-per-litre gas tax cut is looming.

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And that’s not good news for taxpayers.

About a year ago, then future-premier Wab Kinew announced that if he was elected, he would cut the province’s fuel tax for at least six months. He followed through on that promise on Jan. 1 and drivers started saving money immediately.

Then in April, Kinew extended his gas tax cut for an additional three months. The cut is now slated to expire at the end of September.

But the premier hasn’t confirmed if gas prices are going to jump 14 cents-per-litre on Oct. 1.

“As we approach Sept. 30, we’re considering an extension to the gas tax holiday,” said Kinew earlier this month. “If people in the fall feel like the cost of living is still a real big burden, then that would be the argument to extend the gas tax holiday further.”

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It’s a good bet that the premier would have a hard time finding a Manitoban who wants to pay higher gas prices.

Especially since Prime Minister Justin Trudeau plans to keep hiking his carbon tax. Come Apr. 1, 2025, Trudeau will raise his carbon tax on gasoline from 17 to 21 cents-per-litre. Manitobans can’t afford to keep paying Trudeau’s carbon tax and have the provincial gas tax tacked back on top.

But this should be a no-brainer. Because of the fuel tax cut, Manitoba has the lowest fuel taxes and lowest fuel prices in the country. Across Canada, gas taxes make up an average of 60 cents-per-litre of the pump price. In Manitoba, that number is only 34 cents-per-litre.

Kinew needs to extend the fuel tax cut again because the fuel tax cut has saved Manitobans serious money since Jan. 1.

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A typical two-car family with a minivan and a light-duty pick-up truck that fills up once every two weeks will have saved more than $440 by the end of September. In total, the fuel tax cut will have put $256 million back into Manitoba taxpayers’ wallets. If you drive a larger truck, run a business with a lot of vehicles or have a longer commute, you will have saved even more.

Those savings will come to a screeching halt if Kinew doesn’t extend the cut before the deadline.

And if those numbers aren’t enough, polling also shows that Manitobans want the gas tax cut to stay. Recent Leger polling shows that 71% of Manitobans want the government to extend the gas tax cut again. And 68% of Manitobans want the government to scrap the fuel tax for good.

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The premier said that he hasn’t extended the cut already because it’s a “balancing act.” He argues that the government might want to cancel the cut and take more cash out of Manitoban’s pockets because he wants to spend more money.

But the government can extend the gas tax cut without increasing the deficit, it just has to cut wasteful spending.

The fuel tax regularly brings in about $342 million to the government or about 1.4% of total government revenue.

In its latest budget, the government announced a whack of corporate welfare and other subsidies. This includes $50 million for a fund to hand out money to corporations and a $10 million giveaway to a bus company. The government is also spending $25 million to hand out thousands of dollars to electric vehicle buyers.

Not to mention the $40 million in new bureaucrats the government has hired since being elected.

If the government put a lid on the new spending spree, Kinew would be able to extend the gas tax cut for almost another five months without increasing the deficit.

Kinew needs to listen to taxpayers. The government needs to extend the fuel tax cut again and keep Manitobans saving money at the gas station.

— Gage Haubrich is the Prairie Director for the Canadian Taxpayers Federation

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