Manitoba's PST increases to 8%

By: dave.cournoyer

Manitoba’s latest budget reveals plans to increase their PST to 8 per cent. The money gathered from this one per cent increase is planned to go towards infrastructure spending.

Currently, 1 per cent of the province’s PST goes directly into infrastructure funding. With this increase, an additional 1 per cent will be added.

Stan Struthers, Manitoba’s finance Minister said the money will go towards repairing and renewing roads, improving flood prevention infrastructure and increasing capital investments such as hospitals and sports arenas. 

The current balanced Budget Legislation would require the NDP government to hold a referendum before the PST could be increased. Struthers plans on changing that, as he believes the province needs to move quickly in order to improve flood prevention infrastructures.

Struthers hopes to have all three levels of government working together in this project.

It is estimated that nearly $277 million will be raised for provincial coffers because of this increase by the next budget. This will contribute to the 1.8 billion dollar investment in infrastructure that is currently planned for the year.

Officials state that on average, this means an extra 300 dollars from the average household per year.

The federal government’s Building Canada Plan offers provinces infrastructure funding if they can match it first.  Struthers has stated that Manitoba plans to take advantage of this plan until it expires in 10 years.

Provincial officials state that, after that, the tax increase will be reversed.

Some of the infrastructure improvements Manitoba has planned to improve are portions of the Trans-Canada Highway between portage la Prairie and Highway 16, and the Brandon’s Keystone Centre.

A new recreational multiplex for the Peguis First National will be built, and funds will be allocated to the Selkirk Mental Health Hospital for needed improvements.