December 30, 2019
Province Announces More Provincial Tax Relief For Manitobans
– – –New Year Brings New Tax Savings: Fielding
The provincial government is ringing in the new year with more tax relief for Manitobans, Finance Minister Scott Fielding announced today.
“The 2020 Tax Rollback Guarantee will bring significant savings to Manitobans,” said Fielding. “Our plan will save Manitobans an average of $2,020 over the next four years by removing unnecessary taxes and fees so people can keep more of their hard-earned money.”
The provincial government continues to roll out its 2020 TaxRollback Guarantee, which will be fully implemented over the next four years. Further measures will include eliminating the sales tax on home insurance, personal services such as haircuts, and on professional personal income tax return preparation, as well as phasing out education property taxes once the budget is in balance.
The 2020 Tax Rollback Guarantee includes previously implemented measures, such as reducing the provincial sales tax rate to seven per cent from eight per cent and indexing the Basic Personal Amount and personal income tax brackets.
Since implementing indexation, approximately 7,600 Manitobans have been removed from the tax roll and Manitobans have saved more than $75 million. In 2020, the province estimates another 3,300 Manitobans will be removed from the tax roll, with additional tax savings of $34 million.
As previously announced, Manitobans will no longer have to pay provincial sales tax on the preparation of wills as of Jan. 1, 2020. Sales tax will be eliminated from the preparation of wills, health-care directives and powers of attorney. This measure is estimated to save taxpayers nearly
$1 million per year, Fielding noted. The province will also eliminate probate fees as of July 1, 2020.
To assist Manitoba businesses, the province committed to reducing the interest rate on provincial tax debts from the current prime plus six per cent. The interest rate would decrease by one per cent over the next three years as follows:
· prime plus five per cent on Jan. 1, 2020;
· prime plus four per cent on Jan. 1, 2021; and
· prime plus three per cent on Jan. 1, 2022.
“We are committed to making Manitoba’s tax environment more affordable and fair for taxpayers,” said Fielding. “By making changes to the interest rate we charge on provincial tax debts, we are bringing Manitoba more in line with other jurisdictions.”
Manitoba Finance requires taxpayers to pay interest on outstanding debts for various provincially administered taxes, such as the retail sales tax,the health and post-secondary education tax levy, the insurance corporations tax, the corporation capital tax, the tobacco tax, the fuel tax and the mining tax. The province does not collect personal and corporate income taxes, which are administered on Manitoba’s behalf by the Canada Revenue Agency.
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