Manitoba

Manitoba PCs to eliminate PST on personal services, phase out education property taxes as part of 2021 budget

This year’s provincial budget will remove the PST on personal care services, such as haircuts and salon services, and begin to phase out Manitoba education property taxes, Premier Brian Pallister said Thursday. 

Both measures will come into effect later this year, Premier Brian Pallister announced Thursday

Premier Brian Pallister announced two measures to reduce provincial taxes for Manitobans Thursday that will be part of the province's budget for 2021. (John Woods/The Canadian Press)

This year's Manitoba provincial budget will remove the PST on personal care services, such as haircuts and salon services, and begin to phase out education property taxes, Premier Brian Pallister said Thursday.

"We … know that there are significant challenges for Manitobans as a consequence of COVID, we know that tens of thousands of Manitobans have lost wages, that many of our small-business people have struggled because of the necessary restrictions that we have had to impose and maintain," he said during a news conference. 

"We know that many others have struggled to protect their hard-earned incomes. And so we believe that more tax relief sooner is better in the face of the realities of COVID than to delay it."

The PST on personal services will be removed later this year, Pallister said, following through on a promise his Progressive Conservative party made during the 2019 provincial election campaign.

The promise to eliminate provincial education taxes from annual property tax bills was also made ahead of that election, and was reiterated in the 2020 throne speech. 

About 658,000 Manitobans are expected to benefit from this, Pallister said. 

He said that qualifying Manitoba property owners will receive rebate cheques in the coming months. 

The provincial government will release its 2021 budget next Wednesday.

Budget details have been trickling out this week, including a promise to spend at least $50 million to reduce wait times for surgeries and procedures delayed due to the COVID-19 pandemic.

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