PCs demand permanent cut to fuel tax as NDP tries to clear up eligibility confusion in tax holiday bill

The NDP government worked to clarify its plans for a temporary suspension of the provincial fuel tax Wednesday while the Opposition Progressive Conservatives called for the tax to be permanently eliminated.

Finance Minister Adrien Sala said his bill, now before the legislature, is aimed at providing temporary relief for people facing inflation. But questions remained about exemptions from the proposed savings.

"This is a bill that's intended to bring savings for all Manitobans," Sala told reporters.

If passed into law, the bill would suspend the 14-cent-per-litre fuel tax on Jan. 1, for at least six months, from farm trucks, fire fighting equipment and vehicles used on roadways. The NDP have said they would extend the tax holiday if inflationary pressures remain high.

It would notapply to discounted marked fuel used in agriculture equipment orpropane used in some vehicles and other equipment.

The Tories have said the bill is confusing because its reference to roadway vehicles seems to indicate that fuel used in snowmobiles, boats and all-terrain vehicles would not get the discount.

Sala, who already had to clarify other details of the bill earlier in the week, said no one will crack down on off-road enthusiasts for using the fuel discount, as long as they fill up at a gas station.

"We will not be policing folks at the pump. All Manitobans, when they come to those gas stations ... will see those savings," Sala said.

On Monday, Sala said farmers aren't being left out of the provincial gas tax and encouragedthem to take advantage of the new tax relief by switching the gas they use.

The marked fuel used by farmers for some agricultural equipment is excluded from the federal carbon tax, which the Canadian Taxpayers Federation has estimatedadds14 cents per litre of clear fuel.

'Six months is not enough'

On Thursday, Sala wasn't telling farmers which gasoline they should use.

"What we're saying is: this is a great opportunity to reduce costs for users of clear gasoline."

But PC finance critic Obby Khan isn't satisfied with that explanation, sayingthe bill does not help all Manitobans.

If a farmer were to switch to clear fuel from marked, they would end up paying 11 cents more than they currently do because of the federal carbon tax,Khan said.

"So now, that farmer is paying more money according to what the NDP are proposing."

He called for the fuel tax, which brings in more than $300 million a year for the government, to be axed altogether.

"Give Manitobans the relief that they're calling for that six months is not enough and add in all the fuels," Khan said.

Sala said the government's planned temporary tax holiday is a balance between providing help against inflation and protecting the province's finances. He also fired back at the Tories, saying they never cut the tax during their seven years in office.

The tax bill was scheduled to go to public hearings before a legislature committee Wednesday night. Critics, including some environmentalists and anti-poverty groups, have criticized the bill.

They have said it benefits people with gas-guzzling vehicles, and does not help people who ride transit.