View From the Legislature

Tax Reductions, Economic Recovery, Highlight Budget Bill

  • Kelvin Goertzen, Author
  • Member of the Legislative Assembly, Steinbach

The Manitoba Legislature has been in session for the past two weeks to complete this year’s provincial budget and ensuring that measures to offer support and economic recovery are in place. While the 2021-2022 provincial budget was unveiled in the spring, the bill which implements the budgetary measures is currently before the Manitoba Legislature.

It includes several important initiatives and fulfils commitments made by the government. One of the measures will exempt personal services from the PST. This includes hair services and haircuts, and non-medical skin and aesthetician services. The upcoming removal of the PST was a commitment made after the former NDP government broadened the sales tax to many services that were previously exempt.

As well, the budget legislation provides for a teacher’s expense tax credit to align with the one currently offered by the federal government, a permanent book publishing tax credit and a reduction in payroll taxes for many Manitoba small and medium sized businesses. This is in addition to the Education Property Tax Rebate that Manitobans have been receiving as their property tax bills came due.

Together with this modest tax relief, there is continued historic support for healthcare as Manitoba and the world move through the pandemic. Over the past 18 months Manitoba and all of Canada have been working to create testing facilities and vaccine distribution centres to combat COVID19. Financial support for facilities, equipment, and the human resources to keep these centres operational continues in this current budget legislation.

Even in this challenging time however, Manitoba is looking forward toward recovery and there are many signs that show reason for optimism in our province. Last week, Statistics Canada released its employment numbers and it showed that Manitoba has the lowest unemployment rate in the country. In fact, one of the greatest challenges that many employers are facing right now is trying to find enough employees as many businesses move into recovery. Even as our province is closely monitoring and acting upon the difficulties of the pandemic, we are also looking toward strong economic recovery.

This past weekend was Thanksgiving in Canada. It is a traditional time to not only come together but to also reflect upon those things for which we can be grateful. This is now the second Thanksgiving living through COVID19 and there is no doubt many who are tired of the pandemic and all of the challenges and frustrations that it brings. Yet, this year many activities that were not happening last year are again taking place and the economic situation is clearer and stronger. Canada continues to be a leader in the world when it comes to safety and recovery. Thanksgiving provided an opportunity to both revive and recharge. As we head into fall, even with challenges that remain, there is much reason for optimism.