NDP says farmers can change fuels to take advantage of planned tax holiday

The Manitoba government says farmers aren't being left out of a plan to cut the fuel tax at the pumps.

The NDP's pledge to temporarily eliminate the provincial gas tax wouldapplytomost types of fuel used in transportation, exceptpropaneand the dyed gasoline only intended for off-road use, such as agriculture equipment.

Finance Minister Adrien Sala said farmers can take advantage of the new tax reliefbyswitching the gas they use.

"What we're saying is all clear gasoline in this province which farmers can use and are welcome to use and we encourage them to useshould we be able to bring this measure in will see that reduction [on the provincial gas tax] from 14 cents to zero," Sala said.

The Progressive Conservatives accused the governing NDP of leaving farmers off the list for thetax holiday, scheduled to take effect on Jan. 1 if the government's legislation passes.

Tory agriculture critic Jeff Bereza tabled a letterMonday in which major agriculture organizationsManitoba Pork, Keystone Agricultural Producers and Manitoba Beef Producers told the government it should extend the same tax exemptiontopropane and dyed gasto be"in line with the bill's intended benefits."

"After years of being hounded with this NDP-Liberal carbon tax, it's ridiculous the NDP would leave farm equipment out of the temporary fuel tax cut," Bereza told question period.

"When will this government take some responsibility for farmers' ability to make a living?"

Both propane and dyed gasoline are subject to a provincial gas tax of three cents a litre, a fraction of the 14-cent tax on clear gasoline.

Many farmers use dyed gas because it ischeaper.It is coloured to indicate the fuel is a low-tax option only available to certain customers, such as agricultural producers.

For at least six months, the NDP'sproposed legislation would make clear gasoline the more affordable option for those farmers.

"When farmers are looking to get that discount, that 14 cents a litre discount, they are welcome to use that clear gasoline" like everyone else,Sala said.

Bereza said the government could avoid any confusion by amending its bill and ensuring all gasolines are treated equally throughout thetax holiday.

Fairness for all who drive: KAP

The message is echoed by the Keystone Agriculture Producers.

"I think the intent of the bill from what we're seeing is to make sure that there is affordability for all Manitobans," said general manager Brenna Mahoney.

Other fuel typesare set to be excludedfrom the provincial gas tax, "and sowhat we're asking is just if those two items [propaneand dyed gas]can be included."

Sala said the government wouldn't make exemptions for propane-fuelled vehicles because of the complexitiesin eliminating a tax just for use in motor vehicles when propane has many more purposes, including home heating.

The letter from the agricultural groups states that Brandon School Division is growing its fleet to 34propane-fuelled buses, which won't be eligible for the tax holiday.

"Frankly, the purpose of this [promise] was to bring savings for families, for Manitobans, families who've been struggling under the weight of high inflation," Sala said.