Manitoba

Manitoba won't charge PST on federal carbon tax

Manitoba Premier Brian Pallister took another shot at the federal government's carbon tax in an announcement that the province won't slap its sales tax on top of the new levy from Ottawa.

'We are ensuring Manitobans won't be triple charged,' Premier Brian Pallister says

Manitoba Premier Brian Pallister, a foe of Ottawa's carbon tax levy, says his government won't hit Manitobans with a PST on the revenues Ottawa earns from the cost of heating. (John Woods/The Canadian Press)

Manitoba Premier Brian Pallister took another shot at the federal government's carbon tax in an announcement that the province won't slap its sales tax on top of the new levy from Ottawa.

The Manitoba government said Tuesday it would implement an exemption so the PST is not charged on the federal carbon tax, which comes into effect in April.

The Progressive Conservative government said Ottawa's decision to charge GST on its carbon tax revenues is effectively taxing Manitobans twice.

"The added cost of charging GST on top of the federal carbon tax means Manitobans will have less disposable income at the end of the month," Pallister said in a news release. "Affordability matters and we are ensuring Manitobans will not be triple charged."

The government estimates it will lose out on $3.6 million in revenues by withholding the PST on the carbon tax.

The province also said the average household will pay $92 more for home heating in 2019 due to the new carbon tax and GST.

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.