Proposed law to drop PST from food set for rough ride in legislature

The NDP’s budget bill, which will remove the PST on additional food items sold at grocery and convenience stores starting July 1, was introduced in the legislature Thursday.

“We’re delivering on the top affordability priority of Manitobans,” Finance Minister Adrien Sala said in relation to Bill 53 after question period.

“We’re going to reduce the cost of your grocery bill on Canada Day — that is if the PCs let us pass the bill.”

The proposed law, which includes other measures, such as giving municipalities the authority to tax short-term rental accommodations and reduces the legislative building restoration budget by $2 million, could be held up by the Tories and delay the summer break.

The Progressive Conservatives have said they want the bill to include a provincial income tax break or they won’t co-operate with its speedy passage before the house rises June 1.

Premier Wab Kinew has said the legislative assembly will sit through the summer to get the bill passed.

“Delaying the bill means delaying the savings,” Sala said Thursday. “We put forward a comprehensive plan to address the affordability challenges that families are facing each and every day. That includes lowering grocery costs and increasing supports for renters and homeowners.”

There is no PST on basic grocery items. The bill would eliminate the seven per cent PST on all food and drinks with less than one per cent alcohol, such as snacks, pop, Slurpees, sandwiches, and takout meals.

The PCs say the PST cut will save a family of four $100 annually. They want the province to increase the basic personal amount someone can make before paying income tax to $21,000 from $15,780.

“We will do what it takes to ensure that we are standing up for real affordability measures for Manitobans,” PC finance critic Lauren Stone said Thursday.

The Budget Implementation and Tax Statutes Amendment Act includes measures outlined in the April budget, such as increasing the homeowner affordability tax credit by $100 to $1,700 and the renters tax credit to $675 from $625, as well as free transit for kids in school.

The bill also aims to put an end to restrictive covenants to increase competition among grocery stores, ban predatory pricing practices that unfairly charge people different prices for the same product, and undertake a comprehensive study on grocery pricing to find new ways to reduce food costs, Sala said.

Tucked inside the bill is the short term accommodation tax that would allow a municipal council to impose taxes on a person who purchases the use of short-term accommodation.

Sala said it gives municipalities the power to tax short-term rentals, not just hotels and motels.

“We’ll put that authority in their hands as they currently have with other taxing powers while requiring that they go forward with a public consult should they want to make some changes,” he said.

The bill also chops $2 million from the annual pot to restore and preserve work on the legislative building — to $8 million.

Sala said the cut won’t delay the work set out in the Legislative Building Centennial Restoration and Preservation Act.

“This just reflects a small reduction in that number,” the minister said. “Ultimately, should we need to appropriate more, we’ll come back and bring that ($2 million) forward.”

carol.sanders@freepress.mb.ca