Manitoba Tories want a tax cut

Manitoba Tories are calling for a tax cut.
Brian Pallister said in increase in the basic personal tax exemption would put an extra $200 in every worker's pocket, which would in turn help the economy. (Tom Hanson/Canadian Press)

Manitoba Tories are calling for a tax cut.

Progressive Conservative leader Brian Pallister held a news conference on Wednesday in Winnipeg to say a PC government would raise the basic personal exemption — the threshold at which people start paying income tax.

It's currently at $8,634, and Pallister said it should be raised to the Canadian average of $10,617.

Pallister said each worker in the province would then have an extra $200 in their pocket, which would help the economy.

The tax cut could cost the provincial treasury up to $130 million a year, but Pallister said that money could be found elsewhere.

The NDP government has raised the personal exemption a few times since taking office in 1999 but unlike most other provinces, does not raise it automatically every year in line with the inflation rate.