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What does Manitoba's new carbon tax mean for your business?

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The “Made-in-Manitoba” carbon tax will begin on September 1st, 2018 and will increase the prices of fuel products including gasoline, diesel, natural gas, oil and propane. 

CFIB is very concerned about the impact the new carbon tax will have on your business and on Manitoba’s economy. Although the provincial government has committed that "all carbon tax revenues received over four years will be returned to Manitobans through tax reductions,"  Manitobans will face a net tax increase of over $117 million this year. 

 

Calculate the direct cost to your business

Direct Cost of "Made-in-Manitoba" Carbon Tax

The Manitoba government plans to offset carbon tax revenues by: increasing the Basic Personal Exemption by $1,010 on January 1st, 2019 and by another $1,010 on January 1st, 2020; and increasing the Small Business Corporate Income Tax Threshold to $500,000 on January 1st, 2019. The government also stated that the carbon tax will be used to reduce the retail sales tax (PST) to 7% by 2020, but has provided no details of when it will do so.

We worry this plan offers no cost certainty and CFIB is committed to holding the government accountable to ensure they deliver the overall tax relief your business needs. 

 

Manitoba businesses remain opposed to carbon taxes:

We know you care about protecting the environment, and are working to implement environmentally-friendly measures in your business. However, the Manitoba government must ensure policies aimed at reducing carbon emissions do not prevent you from growing your business and creating jobs. 

Manitoba’s business owners oppose the introduction of a carbon tax. That’s why CFIB is working hard to raise concerns about the impact of these cost increases on competitiveness, and the effectiveness of the Manitoba plan. 
 

Manitobans Against Carbon Taxes Coalition Launch Winnipeg Manitoba Legislature July 2017

Manitobans Against Carbon Taxes Coalition launch at Legislature in July, 2017

Instead, the Manitoba government should: 
  • provide a clear plan that delivers overall tax relief and cost certainty for your business; 
  • urge the federal government to reconsider its plan to impose a carbon tax in Manitoba; 
  • improve access to programs that help reduce Manitoba’s environmental impact; and
  • educate business owners on ways they can save money and become more green.
What have we been doing to raise your concerns?
  • January, 2018: CFIB met with the Minister of Sustainable Development, Rochelle Squires, to raise your concerns.
  • December, 2017: CFIB submitted Small business owners’ views of “A Made-in-Manitoba Climate and Green Plan – Hearing from Manitobans.”
  • November, 2017: CFIB attended a Climate and Green Plan consultation meeting to share your ongoing concerns with the introduction of a carbon tax.
  • October, 2017: Manitoba released the Made-in-Manitoba Climate and Green Plan and launched a public consultation. The proposed Plan includes a flat carbon tax of $25 per tonne of CO2 emissions from 2018 until 2022. 
  • October, 2017: Manitoba released findings of legal opinion on carbon pricing. 
  • July, 2017: CFIB joined the Canadian Taxpayers Federation (CTF), the Western Canadian Wheat Growers Association and AxeTheCarbonTax.ca to form the Manitobans Against Carbon Taxes Coalition to fight the proposed carbon dioxide emissions tax plans being developed by the federal and Manitoba governments. The Coalition also unveiled a province-wide advertising campaign opposing carbon taxes.
  • June, 2017: CFIB launched an aggressive campaign to oppose carbon taxes in Manitoba with a new Action Alert: Stand up for Manitoba and oppose carbon taxes!
  • April, 2017: For the second time, CFIB met a senior officials with the Manitoba government to reiterate your concerns about costly carbon taxes in Manitoba. 
  • March, 2017: CFIB submitted Small business owners’ views on Manitoba`s Climate and Green Plan.
  • March, 2017: The Manitoba government launched its consultation on Manitoba’s Climate and Green Plan. 
  • November, 2016: CFIB conducted its 2018 Manitoba pre-budget survey, which included a question about your views on carbon taxes. The majority (62%) of you told us you oppose the implementation of a price on carbon or a carbon tax in Manitoba.
  • October, 2016: After the federal government announced its Pan-Canadian Approach to Pricing and Carbon Pollution, CFIB met with the Manitoba government to present your serious concerns about the province’s carbon tax plans.
  • August, 2016: CFIB conducted the National Environment Survey to determine your views and concerns on the environment and carbon pricing policies. The survey received 5,982 responses from Canadian business owners (218 responses from Manitoba business owners).
Background of the “Made-in-Manitoba” Climate and Green Plan:

On October 3, 2016, the federal government announced the basic framework for the Pan-Canadian Approach to Pricing Carbon Pollution, which requires each provincial government to adopt a carbon price plan in 2018.  

In response, the Manitoba government released its Made-in-Manitoba Climate and Green Plan draft on October 27, 2017, and is going through its consultation process. The proposed Plan includes a flat carbon tax of $25 per tonne of CO2 emissions from 2018 to 2022. In contrast, proposed carbon tax plans in Saskatchewan and New Brunswick do not impose new taxation on residents or businesses. Importantly, Manitoba`s proposed plan offers no direct tax relief for small businesses and CFIB has raised this concern and others with the Minister of Sustainable Development.

Tell us how your business will be impacted:

Please call CFIB today to share your concerns about how Manitoba's costly carbon tax will impact your business, so we can raise them with the government.