The Government of Manitoba has lowered the provincial sales tax to 7% from 8% previously.
The Progressive Conservative government announced the sales tax reduction in its latest budget, delivered on Thursday. The government said the provincial sales tax will be lowered to 7% as of July 1, which will save the average Manitoba household $350 a year.
The tax cut was a cornerstone of the Conservatives' election campaign in 2016, three years after the previous NDP government had raised the PST. Premier Brian Pallister promised the cut would come before the next provincial election, which is scheduled for October 6, 2020, and in recent months he hasn't ruled out calling an earlier vote.
The latest 2019-20 budget also reduces ambulance fees to a maximum of $250, down from $340 previously. It keeps a tight rein on spending increases, with hikes of less than 1% in health and education operating costs and cuts to some infrastructure spending.
The Manitoba government is forecasting a deficit of $360 million, $161 million smaller than the deficit in the current fiscal year. The government said it remains on track to meet its promise to balance the budget by the end of a second term in office.
Manitoba's finances have been helped by successive years of major increases in federal transfer payments from Ottawa. This year will see transfers from the federal government to Manitoba jump by more than $300 million, mostly in equalization payments designed to help poorer provinces offer services similar to wealthier jurisdictions.
