It’s time to go shopping! Well, not quite yet. The Pallister government is fulfilling their campaign promise and dropping the PST rate in Manitoba to 7% starting July 1, 2019.
Most purchases in Manitoba will now be taxed at 12% (7% PST + 5% GST) instead of 13% (8% PST + 5% GST). This relates to around $325 million in annual savings which will be the biggest tax cut in Manitoba’s history.
The money will come from an increase in transfer payments from the Federal Government and an expected increase in income tax collection as the province grows.