Bill to cut tax on some food in Manitoba passes after long nights of debate – Winnipeg

Manitoba’s budget bill, which includes a tax cut on some foods, passed through a final vote early Friday after long days and nights of acrimonious debate.

The move paves the way for the elimination of the provincial sales tax from snacks, soft drinks and prepared meals at grocery and convenience stores, as of July 1.

The NDP government introduced the bill earlier this month and wanted it passed into law before the legislature summer break, which is slated to start Monday. The NDP said any delay beyond that could push back the implementation of the tax cut.

“It is absolutely inconceivable to Manitobans that the Opposition is fighting against tax cuts that will save them money,” Finance Minister Adrien Sala said Thursday night.

The Opposition Progressive Conservatives said the tax cut on food won’t amount to much because most groceries, such as meat, milk and produce, are already tax-exempt. Government estimates predict an average family of four could save $100 a year, and the Tories said that pales in comparison to higher property taxes, fuel prices and other costs people are facing.

“This NDP government doesn’t care … that Manitobans are living through an affordability crisis,” said Tory finance critic Lauren Stone.

The Tories tried to add an income-tax cut to the bill, but were outvoted by the NDP majority. The Tory plan would have cost the province important revenue and could have led to a downgrade by credit-rating agencies, Sala said.

The bill that passed early Friday also implements other measures promised in the budget, such as increases to tax credits for homeowners and renters.

The NDP made mention of the legislative standoff in a fundraising email sent to supporters this month. The message asked for money to help the party fight Opposition “obstruction.”

The standoff saw the Tories take turns talking at length. Longtime legislator Kelvin Goertzen spoke for four hours without a break, via Zoom, during one overnight sitting earlier in the week that ran for more than 24 hours.

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