NDP promises to temporarily tank gas tax if it forms next Manitoba government

Manitoba NDP Leader Wab Kinew says his party would temporarily eliminate the provincial gas tax if it wins the Oct. 3 provincial election.

Manitobans are currently charged 14 cents per litre in provincial fuel taxes.

At a Monday event in Winnipeg, Kinewblasted the present Progressive Conservative government for "playing games with Ottawa" by railing against the federal carbon tax while taxing Manitobans for gas.

He said the PCs press the federal government to make gasoline prices more affordable, "and yet they keep taxing you, each and every day, at the pump."

The NDP's proposed cut to the gas tax wouldn't be permanent, though. Kinew said it would remain in place "so long as inflation remains high."

Wab Kinew reveals plan to cut gas tax in Manitoba

1 year ago

Duration 1:44

The NDP Leader promises to temporarily eliminate the province's 14-cent per litre gas tax if his party is elected

His party is budgeting$165 million to cover the gas tax cut for an estimated six-month period. Should the cut be required for a longer period, the cost would increase, but he said his party is prepared to extendthe tax break.

"I don't know about you, but in our household, the workhorse that we use to drive to work, to drive the kids to their activities is a pickup truck and it takes 100 litres to fill up every time we go to the pump," Kinew said.

"That means that this announcement for a family using a vehicle like [that], it'll save you $14 every single time you gas up."

Mixed reactions

But Liberal Leader Dougald Lamont said the NDP's proposal is a "lose-lose situation" for the province.

"We're running a deficit.The NDP are going to be borrowing $165 million to subsidize gas prices, and people will use it once and burn it," he said in an interview.

Cliff Cullen, a Progressive Conservative MLA, said the government considered an elimination or reduction on the gas tax, as Alberta and Ontario have done, but felt the best way to help Manitobans was sending affordability cheques directly to households.

"Clearly, we've got our record on affordability. We've got a record on accountability. They've got a record on taxation."

Nicole Grondin delivers pizza in Winnipeg a few times a week, but says the price of gas eats up her tips.Eliminating the gas tax would be wonderful for her, but she's not on board with a temporary fix.

"What is the point of a trial basis?" Grondin asked.

Mike Deck of Selkirk, Man., says the NDP's idea is "a wrong approach."

Rising gas prices haven't negatively impacted his life in a major way, but he said "everything just keeps going up, and people are willing to pay."

He's looking to vote for a party that offerssolutions for social inequalities in the upcoming election. If the NDP wants to go after gas prices, Deck suggests it should push the federal government to limit oil company profits.

Mike Makarich, owner of Shilo Delivery in Brandon, Man., said he'd support cutting the tax since it would bringgas prices more in line withAlberta, which stopped collecting the tax.

An NDP government would also hold gas companies accountable by bringing in new regulations on the price of gasoline to stop anti-competitive behaviour, Kinew said Monday.

"Every single long weekend, the gas prices go up without fail ...Is it because the oil prices have gone up? No," he said.

Pressed about whether he believes fuel companies are conducting unfair business practices, Kinew said "we will never find a smoking gun to prove that, but I think we all see what happens."

Other provinces, primarily east of Manitoba, are already taking similar measures to ensure stabilized gas prices for Canadians, said Kinew.

The Canadian TaxpayersFederationapplauded the NDP's Monday announcement in a news release, saying the move will give Manitobans reliefat the pump.

The federationalso wants the party tolook atpermanently eliminatingthe gas tax.

Specifics on extension pending: Kinew

Kinew was also asked what level of inflation he would consider acceptable enough to reimplement the tax.

"That's something we're going to work on with economic leaders and Manitobans," he said, adding the target rate for inflation is typically one to three per cent.

Manitoba's consumer price index rose 3.4 per cent in May 2023, which is down 2.1 points from the April 2023 increase, said a report released by the province earlier this year.The May increase is the lowest monthly one since June 2021, when the rate was 2.9 per cent.

Asked if he would bring the tax back if the inflation rate dropped below three per cent, Kinew said, "I think we'd have to look at what's going on with interest rates, too."

Christopher Adams, a political scientist at the University of Manitoba, said the NDP is trying to appeal to the middle class voters it will have to win over.

He called the tax break an attempt to counter Tory messaging that Kinew's running a tax-and-spend party.

Last week, Kinew promised up to $4,000 for Manitobans who buy an electric or plug-in hybrid vehicle as part of the NDP's climate commitments. On Monday, he insisted the gas tax plan doesn't contradict those efforts.

"The reality of life in Manitoba today, especially if you live in the suburbs, especially if you live in rural or northern Manitoba, is that you're going to be using gasoline for the foreseeable future and you need help," he said.

"In order for us to maintain the public support for addressing climate change, we need to help you right now."

Manitoba NDP pledge to put brakes on provincial gas tax

1 year ago

Duration 2:19

Manitoba NDP Leader Wab Kinew says his party would temporarily eliminate the provincial gas tax if it wins the Oct. 3 provincial election.