Carbon Tax as it relates to the 2018 Budget

- by Don Stewart

The Manitoba Trucking Association was front and centre, when Finance Minister Cameron Friesen unveiled Manitoba’s 2018 Budget. On the heels of the unveiling, the MTA attended an event headlined by Minister Friesen, with hopes of better understanding the carbon tax revenue dispersement model. At both events, MTA staff made it clear to our government representatives that the current course isn’t acceptable to our industry.

Starting September 1, 2018, the fuel pumps in Manitoba will see an increase of 6.7 cents a litre for diesel, which equates to an additional $50 million in fuel tax paid by Heavy Diesel Vehicles in Manitoba, over and above the $318 million Manitoba collects in fuel tax from our industry at present.

The MTA has been working tirelessly alongside the provincial government for some time, with the expectation of collaborating on a commercial vehicle GHG reduction strategy. The MTA and others were advised to expect that the revenues collected from the carbon tax would be revenue neutral and invested into environmental programming, which for our industry would come in the form of the GrEEEner Trucking Efficiency Initiative. This is not the case as the government has clearly stated that carbon tax revenues will be directed towards income tax and other cuts. As well, in 2018 and forecasted for 2019, the provincial government has stated they will be collecting more in carbon taxes than they will be returning to Manitobans.

The MTA is diligently working with government to right this. MTA staff have been told that some programming for the trucking industry is coming. We will continue working in good faith in that regard but need our members to know that until specific commitments have been made public, we will not cease to speak out on this issue.

If you have any questions, please don't hesitate to contact the staff at the MTA.

204 632-6600