On April 7th, the provincial government delivered the 2021 Manitoba Budget. CFIB pushed hard to ensure this Budget would provide help so Manitoba's businesses and economy can recover.
2021 Manitoba Budget Highlights:
Cost relief for businesses:
- A new education property tax rebate will be issued this summer to give commercial property owners back 10% of their bill this year.
- Farmland property owners will get a 25% education property tax rebate in 2021 and an additional 25% back in 2022.
- Health and Post Second Education Tax Levy: The province announced that the Manitoba Payroll Tax brackets will increase again on January 1st, 2022. The exemption will increase from $1.50 million to $1.75 million and the upper bracket will increase from $3.0 million to $3.5 million.
- On December 1st, PST will be removed for many personal services including haircuts at salons, non-medical skin treatments, aesthetics, spa services, tattoos, etc.
- The Small Business Venture Capital Tax Credit maximum eligible investment will increase from $450,000 to $500,000 for this tax year. The maximum claimable credit will also increase from $67,500 to $120,000.
Deficits and spending:
- The 2021-22 summary deficit is expected to be $1.597 billion. The government recently announced that it may take until 2028-29 to return to balanced budgets.
- The Q3 update from the 2020-21 deficit forecast increased slightly from $2.05 to $2.08 billion.
- The province has earmarked $630 million for road construction and maintenance.
- Importantly, $300 million has been set aside as a contingency for unbudgeted expenses.
- Last, but not least, $62 million has been budgeted to help businesses retrain employees. Roughly $45 million of this funding was previously committed.
Red tape reduction:
- The provincial government reaffirmed their commitment to reducing red tape and plan to reduce the regulatory burden by another 2.5%.
Other noteworthy changes:
- On December 1st, the province will begin charging PST on new types of online businesses and services.
- Online marketplaces will be required to collect and remit sales tax on the sale of taxable goods sold to Manitobans on their electronic platforms.
- Online accommodation platforms will be required to collect and remit sales tax on the booking of taxable accommodations in Manitoba.
- Streaming service providers will be required to collect and remit sales tax on the sale of their audio and video streaming services to Manitobans.