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Manitoba’s Most Watched Provincial Sales Tax Hike


 Manitoba's Wapusk National Park.

Arguments for and against a controversial Manitoba provincial sales tax increase were heard in court yesterday. Now taxpayers and lawmakers are awaiting a decision by Queen’s Bench Judge Kenneth Hanssen.

Under dispute is how the 1% additional sales tax came to be.

The governing New Democrat Party (NDP) first suspended a legal requirement of “a section of the balanced budget law … [requiring] a referendum on any increase to provincial sales, income, or payroll taxes.” It then raised the provincial sales tax from 7% to 8%.

The opposition Progressive Conservative Party (PC) is challenging the increase, arguing that the NDP broke the law. In its defense, the NDP says “it had to raise the sales tax to make important investments in infrastructure” and that “the provincial government has a right to manage the economy and change laws freely.”

At the close of the televised arguments, Judge Hanssen said he would endeavor to reach a decision quickly but that it would take time.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.