Manitoba government expands fuel tax holiday to include gas type used in agriculture following outcry

After facing pressure from the Official Opposition, the Manitoba government is expanding whichtypes of gas are eligible for its temporary suspension of the provincial fuel tax.

That tax holiday will nowincludemarked fueldyed gasoline used in agriculture equipmentunder an amendment tabled Friday morning in the legislature by the NDP government.

The government heard "some concerns about the lack of clarity around who could access this benefit," Finance Minister Adrien Sala said.

"We've made small changes to ensure that there'sno longer any confusion about the fact that this bill will benefit all Manitobans who go to the pump, and will reduce those fuel taxes to zero."

Marked fuelis currently subject to a provincial gas tax of three cents a litre a fraction of the 14-cent tax on clear gasoline, the type most consumers buy at the gas pump.

Over the last few days, the Opposition Progressive Conservativesaccused the government of leaving farmers out of the fuel tax break, which is scheduled to take effect on Jan. 1 if the government's legislation passes.

Earlier this week, Tory agriculture critic Jeff Bereza tabled a letter in which three major agriculture organizations Manitoba Pork, Keystone Agricultural Producers and Manitoba Beef Producers said thegovernmentshould extend the tax exemptiontopropane and dyed gasto be"in line with the bill's intended benefits."

'Good first step': ag critic

The Tories also said the bill was confusing because the tax break appeared to only be available for roadway vehicles, excluding snowmobiles, boats and all-terrain vehicles.

The NDP's amendment removes the reference to motor vehicles on a "roadway," along with now listingmarked fuel as one of the fuels eligible for the tax break.

Bereza celebrated the changes his partyand agriculture groups called for.

"We listened to a number of organizations talk about how they felt that they were left outand I think this isa good first step," he said.

Berezastill wantspropane to be added to the list of eligible fuels, but said theTories will vote in favour of the bill.

It needs to pass next week before the legislature rises for the holidays in order to come into effect Jan. 1.

Sala said the tax break is only for fuels used in transportation and it would be too convoluted to incorporate propane because it has a range of other uses, including home heating.

The finance minister had previously defended the bill's wording in interviewsand during a Wednesday committee hearing on the bill.He said anybody could take advantage of the clear fuel discount by filling up at a gas station, including farmers.

He addedthe province wouldn't enforce which vehicles were using the fuel.

The tax exemptionis plannedtolast fromsix to 12 months.