October 6, 2021
Province Presents Budget 2021-22 Implementation Bill
– – –Proposed Legislation Continues Efforts to Protect Manitobans and Advance Pandemic Recovery: Fielding
The Manitoba government has introduced legislation required to finalize the Budget 2021 process and continue the important work of making life more affordable for all Manitobans while providing significant financial support in the province’s fight against COVID-19, Finance Minister Scott Fielding announced today.
“While COVID-19 continues to be the most significant challenge of our time, Budget 2021 provides important financial relief for hard-working Manitobans, while providing record investments in the services Manitobans rely and depend on,” said Fielding. “This legislation continues our efforts to protect Manitobans’ lives and livelihoods and to help position our province for recovery.”
The proposed budget implementation and tax statutes amendment act, 2021, (BITSA) is the legislation that supports the government’s budget commitments and makes the necessary amendments to statutes.
The act would:
- establish a private sector-led economic development agency and set out the mandate, powers and responsibilities for Invest Manitoba to facilitate and encourage economic development in Manitoba, and to provide advice to the government about economic policy and incentives for economic development;
- exempt personal services from retail sales tax including hair services and haircuts, non-medical skin and aesthetician services, body modifications and spa services;
- reduce payroll taxes for Manitoba’s small and medium-sized businesses, resulting in $9.7 million in savings benefiting 1,100 employers and exempting 240 employers entirely;
- improve the Interactive Digital Media Tax Credit and Small Business Venture Capital Tax Credit;
- extend the Cultural Industries Printing Tax Credit and Community Enterprise Development Tax Credit;
- adjust the deadline for the frequent filming bonus for the Film and Video Production Tax Credit;
- make the Book Publishing Tax Credit permanent; and
- establish a new Teaching Expense Tax Credit to top up the federal government tax credit.
Similar to other provinces, the bill will help to level the playing field and protect local businesses providing goods and services at the storefront in Manitoba through the application of sales tax to online streaming services, online accommodation platforms and marketplace sellers.
Other measures from Budget 2021 include the $248 million Education Property Tax Rebate, passed in May to ensure homeowners and other property owners received their rebate cheques in the month their property taxes were due. The rebate, which was part of Bill 71 and received royal assent during the last sitting in May, ensures 658,000 Manitobans will receive rebates on their properties this year, noted Fielding.
Budget 2021 tax relief and COVID-19 measures support the government’s $2,020 Tax Rollback Guarantee which provides significant savings for Manitobans over four years, including $275 in savings for the average household this year, noted the minister.
Provisions in BITSA 2021 would also modernize the Financial Administration Act by:
- updating the legislation to better reflect summary government financials and the need for legislation to apply to the entire government reporting entity;
- updating the roles and functions of Treasury Board and the provincial comptroller to apply to all of summary government;
- establish Treasury Board responsibility for appointing an audit committee that oversees internal audits; and
- provide greater flexibility in how government shares financial and administrative functions between departments.
For more information on Budget 2021 measures, visit www.gov.mb.ca/budget2021/index.html.
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