Manitoba introduces bill to temporarily lift provincial tax on fuel

The Manitoba government has introduced a bill to temporarily lift the provincial tax on fuel.

The Manitoba government introduced a bill Thursday to suspend the province's fuel tax for six months, and possibly longer.

If the bill is passed into law, it would lift the 14-cent-a-litre tax on gas, diesel and natural gas used in vehicles between Jan. 1 and June 30. It would also give cabinet the power to extend the tax holiday, perhaps at a reduced rate, for another six months.

"We know that working-class people across this province drive a lot," Finance Minister Adrien Sala said Thursday.

"This legislation will help everyday Manitobans. We're confident about that."

The tax cut was promised by the NDP during the recent election campaign and is aimed at helping people with the rising cost of living. The average family with two vehicles would save $250 over the six-month period, Sala said.

The tax cut has faced criticism from some environmentalists and others, who say it primarily benefits people with large gas-guzzling vehicles and does not encourage people to reduce emissions.

Liberal legislature member Cindy Lamoureux said the tax cut does nothing for many low-income earners.