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Manitoba Budget Proposes PST Cut on More Groceries and Targeted Homeowner Relief

The plan targets cost-of-living relief during a year of rising property taxes alongside a $1.6-billion deficit.

Overview

  • Premier Wab Kinew, who announced the change Tuesday, said prepared foods and drinks at grocery stores would be exempt from PST once the budget passes, with July 1 cited as the target.
  • A government source said the Homeowners Affordability Tax Credit would rise to $1,700 in 2027, with a sliding reduction for homes over $1 million and no credit above $1.5 million.
  • Finance Minister Adrien Sala said the plan funds a 2.9 percent wage increase for early childhood educators and creates 2,000 new child-care spaces.
  • The budget sets funding for cardiac care upgrades at St. Boniface Hospital and a public inquiry into a failed silica sand mine approval that drew conflict-of-interest findings.
  • The province forecasts a $1.6 billion deficit and reports a 19.5 percent yearly jump in property taxes, which helps explain the focus on affordability.