After a brief hiatus, the gas tax is making a comeback in Manitoba. The provincial government announced on Monday that the gas tax will be reintroduced, effective immediately.
The gas tax, which was eliminated in 2018, will now be set at 5.3 cents per litre. This means that for every litre of gas purchased, 5.3 cents will go towards the provincial government.
According to Finance Minister Scott Fielding, the reintroduction of the gas tax will generate approximately $42 million in revenue for the province. This revenue will be used to fund infrastructure projects, such as road repairs and upgrades.
Fielding also stated that the gas tax will help to reduce the province’s deficit, which has been impacted by the COVID-19 pandemic. He emphasized that the tax is necessary for the government to continue providing essential services to Manitobans.
The decision to bring back the gas tax has been met with mixed reactions. Some have expressed concern over the potential increase in gas prices, while others believe that the tax is necessary for the province’s financial stability.
In response to these concerns, Fielding assured that the government will closely monitor gas prices to ensure that they remain competitive. He also noted that the gas tax is still lower than the national average, which is currently at 10.5 cents per litre.
The reintroduction of the gas tax has been welcomed by municipalities, who will receive a portion of the revenue generated. This will help them to fund local infrastructure projects and alleviate some of the financial burden on taxpayers.
In conclusion, the gas tax has returned to Manitoba and will play a crucial role in the province’s economic recovery. While it may be met with some resistance, the government believes that it is necessary for the betterment of the province and its residents.
