Province presents 2018 budget implementation act

The Manitoba government has presented its proposed budget implementation and tax statutes amendment act that would bring into effect important tax relief for individuals and businesses, Finance Minister Scott Fielding announced today.

“Manitobans deserve a break,” said Fielding.  “We are giving Manitobans a break by putting money back on the kitchen table for families, seniors and households across the province.”

In Budget 2018 the province confirmed it would increase the threshold under which individuals pay no income tax by $2,020 over the next two years, taking more than 30,000 lower income Manitobans off the tax rolls.

Fielding noted the proposed legislation would implement key tax measures announced in the budget and others including:

• providing an innovative new Child Care Centre Development Tax Credit that would give businesses an incentive of up to $10,000 over five years to create licensed child-care centres in communities for working families;
• simplifying the process for claiming the Primary Caregiver Tax Credit by removing complicated paperwork and allowing caregivers to self-assess their eligibility and register instead of applying for pre-approval;
• raising the small business income tax threshold to $500,000 from $450,000, saving individual businesses up to $6,000 a year and injecting $7 million back into the economy annually beginning in 2019;
• eliminating the one per cent profit tax on credit unions and caisses populaires starting in 2019; and
• exempting fertilizer bins purchased by farmers for farm use and drill bits designed specifically for oil or gas drilling rigs from the retail sales tax.

The minister noted the proposed legislation also includes technical amendments and other measures such as:

• amending The Fuel Tax Act to provide a carbon tax exemption for inter-jurisdictional commercial passenger and cargo flights, to ensure Manitobans and businesses would continue to have competitive access to air service to other parts of Canada and the world;
• amending various acts to allow chiropractors to provide services through a professional corporation like in other provinces and other self-regulated professions in Manitoba;
• implementing a financial component of Manitoba’s non-medicinal cannabis regulatory system, which is designed to help drive out the illegal market by keeping prices low and promote public safety as the province’s top priority; and
• updating The Health Sector Bargaining Unit Review Act to reflect the creation of Shared Health Services as the provincewide health employer.

“We made a promise to fix the finances, repair the services and rebuild the economy,” said Fielding.  “We are keeping the promises we’ve made to Manitobans.”

Learn more about Budget 2018 at www.gov.mb.ca/budget2018/index.html.

View a copy of the proposed legislation at https://web2.gov.mb.ca/bills/41-3/pdf/b034.pdf.